Gibraltar Industries Misses on Q1 Earnings - Analyst Blog

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Gibraltar Industries, Inc. ( ROCK ) reported adjusted loss per share of 5 cents in the first quarter of 2014, compared with earnings per share of 4 cents in the year-ago quarter. The loss is attributable to a decline in revenues and margins in the quarter.

The top-line result lagged the Zacks Consensus Estimate of 1 cent earnings per share.

On a GAAP basis, Gibraltar Industries reported a loss of 7 cents per share, compared with a loss of 12 cents per share in the prior-year quarter.

Revenues : Gibraltar Industries' net sales were $191.0 million in the quarter, down 2.9% year over year. The decrease in revenues was primarily due to prolonged cold weather in major parts of the U.S. Revenues also missed the Zacks Consensus Estimate of $195.0 million.

Industrial and Infrastructure Products generated $104.3 million, down 3% year over year, while Residential Products segment recorded revenues of $87.0 million, down 3% year over year.

Costs/Margins : Gross profit margin in the quarter decreased 275 basis points to 15.6%. Selling, general and administrative (SG&A) expenses were $29.5 million, compared with $31.0 million in the year-ago quarter.

Gibraltar Industries reported adjusted operating margin of 0.5%, down from 2.9% reported in the year-ago comparable quarter.

Balance Sheet/Cash Flow : Exiting first quarter 2014, Gibraltar Industries' cash and cash equivalents were approximately $78.2 million versus $97.0 million in the previous quarter. Total long-term debt balance remained roughly flat compared with the previous quarter at $213.6 million.

Gibraltar Industries used $14.6 million cash in operating activities, against $12.7 million used in the first quarter 2013. Capital expenditure incurred in the quarter totaled $4.1 million versus $2.0 million in the year-ago comparable period.

Outlook: The company believes that the increasing order rate in the months of March and April will help offset the decline experienced in the first quarter. In the coming quarters, the company expects progress on the back of improved residential demand, increase in demand for postal products, along with growth in the Industrial and Infrastructure products. Based on this, management reiterated its sales growth in the range of 4−7% year over year in 2014 with modest margin growth, compared with 2013. Adjusted earnings per share are anticipated in the range of 76−90 cents in 2014. Moreover, GAAP earnings are expected to range between 73−87 cents.

Other Stocks to Consider

Gibraltar Industries currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks worth considering in the machinery industry include Simpson Manufacturing Co., Inc. ( SSD ), United Rentals, Inc. ( URI ) and Aegion Corporation ( AEGN ). While Simpson Manufacturing and United Rentals sport a Zacks Rank #1 (Strong Buy), Aegion holds a Zacks Rank #2 (Buy).



AEGION CORP (AEGN): Free Stock Analysis Report

GIBRALTAR INDUS (ROCK): Free Stock Analysis Report

SIMPSON MFG INC (SSD): Free Stock Analysis Report

UTD RENTALS INC (URI): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: AEGN , ROCK , SSD , URI

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