Building and construction materials manufacturer Owens Corning (NYSE: OC) will be reporting results this Wednesday morning. Here’s what investors should know.
Owens Corning beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $2.75 billion, up 10% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EBITDA estimates.
Is Owens Corning a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Owens Corning’s revenue to decline 2.3% year on year to $2.70 billion, a reversal from the 11.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.72 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Owens Corning has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Owens Corning’s peers in the home construction materials segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Hayward delivered year-on-year revenue growth of 7.4%, beating analysts’ expectations by 5.5%, and JELD-WEN reported a revenue decline of 13.4%, falling short of estimates by 2%. Hayward traded up 12.1% following the results.
Read our full analysis of Hayward’s results here and JELD-WEN’s results here.
Investors in the home construction materials segment have had steady hands going into earnings, with share prices flat over the last month. Owens Corning is down 9.1% during the same time and is heading into earnings with an average analyst price target of $167 (compared to the current share price of $124.24).
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