Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at American Woodmark (NASDAQ: AMWD) and its peers.

Traditionally, home construction materials companies have built economic moats with expertise in specialized areas, brand recognition, and strong relationships with contractors. More recently, advances to address labor availability and job site productivity have spurred innovation that is driving incremental demand. However, these companies are at the whim of residential construction volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates. Additionally, the costs of raw materials can be driven by a myriad of worldwide factors and greatly influence the profitability of home construction materials companies.

The 12 home construction materials stocks we track reported a mixed Q3. As a group, revenues missed analysts’ consensus estimates by 0.9%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10.9% since the latest earnings results.

American Woodmark (NASDAQ: AMWD)

Starting as a small millwork shop, American Woodmark (NASDAQ: AMWD) is a cabinet manufacturing company that helps customers from inspiration to installation.

American Woodmark reported revenues of $452.5 million, down 4.5% year on year. This print fell short of analysts’ expectations by 1.3%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ adjusted operating income and EPS estimates.

“Our team delivered net sales and Adjusted EBITDA performance that was in-line with the expectations we shared last quarter. The quarter was impacted by continued softer demand in the remodel market along with the slowdown in new construction single family starts over the summer,” said Scott Culbreth, President and CEO.

Unsurprisingly, the stock is down 19.3% since reporting and currently trades at $81.30.

Read our full report on American Woodmark here, it’s free.

Best Q3: Trex (NYSE: TREX)

Addressing the demand for aesthetically-pleasing and unique outdoor living spaces, Trex Company (NYSE: TREX) makes wood-alternative decking, railing, and patio furniture.

Trex reported revenues of $233.7 million, down 23.1% year on year, outperforming analysts’ expectations by 3.7%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

Trex scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 6.7% since reporting. It currently trades at $70.96.

Is now the time to buy Trex? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: JELD-WEN (NYSE: JELD)

Founded in the 1960s as a general wood-making company, JELD-WEN (NYSE: JELD) manufactures doors, windows, and other related building products.

JELD-WEN reported revenues of $934.7 million, down 13.2% year on year, falling short of analysts’ expectations by 5.6%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.

JELD-WEN delivered the weakest full-year guidance update in the group. As expected, the stock is down 40% since the results and currently trades at $8.48.

Read our full analysis of JELD-WEN’s results here.

Builders FirstSource (NYSE: BLDR)

Headquartered in Irving, TX, Builders FirstSource (NYSE: BLDR) is a construction materials manufacturer that offers a variety of lumber and lumber-related building products.

Builders FirstSource reported revenues of $4.23 billion, down 6.7% year on year. This result lagged analysts' expectations by 4.8%. Overall, it was a slower quarter as it also recorded a miss of analysts’ Windows, doors & millwork revenue estimates and full-year revenue guidance missing analysts’ expectations.

The stock is down 15.2% since reporting and currently trades at $146.30.

Read our full, actionable report on Builders FirstSource here, it’s free.

Quanex (NYSE: NX)

Starting in the seamless tube industry, Quanex (NYSE: NX) manufactures building products like window, door, kitchen, and bath cabinet components.

Quanex reported revenues of $492.2 million, up 66.6% year on year. This number was in line with analysts’ expectations. Overall, it was a very strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

Quanex scored the fastest revenue growth among its peers. The stock is down 18% since reporting and currently trades at $23.72.

Read our full, actionable report on Quanex here, it’s free.

Market Update

Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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