Outdoor living products manufacturer AZEK Company (NYSE: AZEK) will be announcing earnings results tomorrow after market close. Here’s what to expect.
AZEK beat analysts’ revenue expectations by 7.9% last quarter, reporting revenues of $285.4 million, up 18.7% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ EPS estimates.
Is AZEK a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting AZEK’s revenue to grow 6% year on year to $443.6 million, slowing from the 10.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.44 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. AZEK has missed Wall Street’s revenue estimates twice over the last two years.
Looking at AZEK’s peers in the building materials segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Vulcan Materials delivered year-on-year revenue growth of 5.8%, missing analysts’ expectations by 2.8%, and Carlisle reported flat revenue, topping estimates by 0.6%. Vulcan Materials traded up 7.6% following the results while Carlisle was also up 6.1%.
Read our full analysis of Vulcan Materials’s results here and Carlisle’s results here.
There has been positive sentiment among investors in the building materials segment, with share prices up 11.8% on average over the last month. AZEK is up 10% during the same time and is heading into earnings with an average analyst price target of $54.11 (compared to the current share price of $49.16).
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