On Apr 8, Zacks Investment Research downgraded
James Hardie Industries plc
) to a Zacks Rank #4 (Sell) from Zacks Rank #3 (Hold).
JAMES HARDI-ADR (JHX): Free Stock Analysis
NORTEK INC (NTK): Get Free Report
GIBRALTAR INDUS (ROCK): Free Stock Analysis
UTD RENTALS INC (URI): Free Stock Analysis
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Why the Downgrade?
On Feb 28, James Hardie Industries reported adjusted earnings of
10 cents per share, up 67% year over year. The results, however,
lagged the Zacks Consensus Estimate of 48 cents. Revenues in the
reported quarter increased 10% year over year to $353 million but
fell short of the Zacks Consensus Estimate of $394 million.
James Hardie Industries expects full-year earnings, excluding
asbestos asset impairment, Australian Securities and Investments
Commission (ASIC) expenses, New Zealand product liability and tax
adjustments to be $190-$200 million, depending on the housing
industry in the U.S. and Australia. Although U.S. housing
activities have been improving for some time, market conditions
remain somewhat uncertain in the light of recent inclement
Moreover, the company forecasts earnings before interest and tax
(EBIT) margin for full-year 2014 to be above 20% in the U.S.A and
Europe Fibre Cement segment, led by improvement in both
underlying market demand and financial performance. However,
uncertainty in the U.S. operating environment will likely weigh
on its margin.
Furthermore, operating environment in Australia is expected to
improve modestly. In Australia, approvals for detached homes
continues to increase. However, the repair and remodel market
continues to deteriorate.
Other Stocks to Consider
Some better-ranked stocks in the same sector that warrant a look
Gibraltar Industries, Inc.
United Rentals, Inc.
). All of these have a Zacks Rank #2 (Buy).