Reflecting On Commercial Building Products Stocks’ Q3 Earnings: Insteel (NYSE:IIIN)

November 28, 2024 at 04:44 AM EST

IIIN Cover Image

Let’s dig into the relative performance of Insteel (NYSE: IIIN) and its peers as we unravel the now-completed Q3 commercial building products earnings season.

Commercial building products companies, which often serve more complicated projects, can supplement their core business with higher-margin installation and consulting services revenues. More recently, advances to address labor availability and job site productivity have spurred innovation. Additionally, companies in the space that can produce more energy-efficient materials have opportunities to take share. However, these companies are at the whim of commercial 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 commercial building products companies.

The 5 commercial building products stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 5.6%.

In light of this news, share prices of the companies have held steady as they are up 4.1% on average since the latest earnings results.

Insteel (NYSE: IIIN)

Growing from a small wire manufacturer to one of the largest in the U.S., Insteel (NYSE: IIIN) provides steel wire reinforcing products for concrete.

Insteel reported revenues of $134.3 million, down 14.7% year on year. This print fell short of analysts’ expectations by 7.5%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.

“As we move forward into fiscal year 2025, we anticipate a gradual improvement in business conditions across our markets,” commented H.O. Woltz III, Insteel’s President and CEO.

Interestingly, the stock is up 3.3% since reporting and currently trades at $30.47.

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

Best Q3: Apogee (NASDAQ: APOG)

Involved in the design of the Apple Store on Fifth Avenue in New York City, Apogee (NASDAQ: APOG) sells architectural products and services such as high-performance glass for commercial buildings.

Apogee reported revenues of $342.4 million, down 3.2% year on year, outperforming analysts’ expectations by 2%. The business had a stunning quarter with a solid beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations.

Apogee achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 19% since reporting. It currently trades at $81.44.

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

Janus (NYSE: JBI)

Standing out with its digital keyless entry into self-storage room technology, Janus (NYSE: JBI) is a provider of easily accessible self-storage solutions.

Janus reported revenues of $230.1 million, down 17.9% year on year, falling short of analysts’ expectations by 7.3%. It was a disappointing quarter as it posted full-year revenue and EBITDA guidance missing analysts’ expectations.

Janus delivered the slowest revenue growth and weakest full-year guidance update in the group. As expected, the stock is down 28.1% since the results and currently trades at $7.41.

Read our full analysis of Janus’s results here.

Johnson Controls (NYSE: JCI)

Founded after patenting the electric room thermostat, Johnson Controls (NYSE: JCI) specializes in building products and technology solutions, including HVAC systems, fire and security systems, and energy storage.

Johnson Controls reported revenues of $6.25 billion, up 6.7% year on year. This result lagged analysts' expectations by 14.7%. Overall, it was a softer quarter as it also recorded full-year EPS guidance missing analysts’ expectations.

Johnson Controls pulled off the fastest revenue growth but had the weakest performance against analyst estimates among its peers. The stock is up 12.2% since reporting and currently trades at $84.01.

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

AZZ (NYSE: AZZ)

Responsible for projects like nuclear facilities, AZZ (NYSE: AZZ) is a provider of metal coating and power infrastructure solutions.

AZZ reported revenues of $409 million, up 2.6% year on year. This result came in 0.7% below analysts' expectations. It was a slower quarter as it also produced full-year revenue and EPS guidance missing analysts’ expectations.

AZZ scored the highest full-year guidance raise among its peers. The stock is up 17.2% since reporting and currently trades at $95.54.

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

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September, a quarter in November) have kept 2024 stock markets frothy, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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