Gibraltar Industries, Inc.
) recently announced its fiscal second-quarter 2014 (ending Jun 30,
2014) preliminary results. The company expects revenues in the
range of $230-$233 million, down from previously expected range of
$243-$248 million. Residential Products segment sales are expected
to be within $116-$118 million, which leads to 6% year over year
growth, down from 20% growth expected earlier. Additionally,
adjusted net income has been lowered to a range of 14-16 cents per
share from the previous projection of 29-32 cents per
The reduced outlook was due to lower end-market demand in the
fiscal second quarter. Gibraltar Industries had reported
disappointing fiscal first-quarter 2014 results due to prolonged
cold weather in major parts of the U.S. Its hopes for stronger
sales in the fiscal second quarter were also dashed due to weak
demand for residential products. Gross profit margin in the fiscal
first quarter decreased 275 basis points to 15.6%.
In the fiscal second quarter, residential products sales
remained low with no further signs of improvement expected in
second half of the year. Gibraltar Industries does not expect
revenues in the second half of fiscal 2014 to be significantly
higher than the first half. Based on this, the company expects
adjusted earnings per share in the second half of the fiscal year
to be in line with the first half.
The company is expected to release fiscal second-quarter results
on Aug 5. The Zacks Consensus Estimate for the same stands at 15
cents per share, reflecting a year-over-year decline of 42.3%.
However, the Zacks Consensus Estimate for fiscal 2014 stands at 82
cents per share, denoting year-over-year growth of 18.8%.
With a market capitalization of $474.8 million, Gibraltar
Industries sports a Zacks Rank #1 (Strong Buy). Other stocks worth
considering in the industry include
James Hardie Industries plc
Quanex Building Products Corporation
Simpson Manufacturing Co., Inc.
). All these stocks carry a Zacks Rank #2 (Buy).
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