Gibraltar Industries, Inc.
) 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.
: 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
Industrial and Infrastructure Products
generated $104.3 million, down 3% year over year, while
segment recorded revenues of $87.0 million, down 3% year over
: 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
Gibraltar Industries reported adjusted operating margin of
0.5%, down from 2.9% reported in the year-ago comparable
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
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.
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
Other Stocks to Consider
Gibraltar Industries currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth considering in the machinery
Simpson Manufacturing Co., Inc.
United Rentals, Inc.
). While Simpson Manufacturing and United Rentals sport a Zacks
Rank #1 (Strong Buy), Aegion holds a Zacks Rank #2 (Buy).
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