NCI Building Systems Inc.
) hit a new 52-week high of $18.77 on Jan 9, up from its previous
high of $17.98.
The stock closed at $18.67 at the end of trading yesterday, with
a solid one-year return of about 27.7% and year-to-date return of
about 6%. The average volume of shares traded over the last three
months was roughly 260K.
Texas-based NCI Building is a metal building components maker
with a market cap of roughly $1.4 billion and long-term expected
earnings growth of 10%.
On Dec 10, NCI Building reported adjusted earnings of 10 cents
per share in the fourth quarter of fiscal 2013 (ended Nov 3,
2013), which rose 25% year over year and beat the Zacks Consensus
Estimate of 7 cents.
Total revenue also climbed 11% year over year to $400 million in
the quarter, surpassing the Zacks Consensus Estimate of $347
million. The improvement was driven by higher volumes in each of
the operating segments, along with contribution from an extra
week in the quarter.
The company incurred almost $20 million of incremental costs
during fiscal 2013. These investments will help enhance
profitability in fiscal 2014 with the absorption of ramp-up
In early 2013, NCI Building reopened its Metal Coaters Coil
Coating Facility in Middletown, Ohio. With this venture, the
company expects to extend its coil coating operations into the
upper Midwest and Northeast.
On the other hand, the Metl-Span acquisition will position NCI
Building as a leader in the insulated metal panel business by
diversifying and expanding its existing product range. NCI
Building will also benefit from a growing customer base as well
as distribution network in North America.
In addition, last year, a fire damaged two ovens at the Jackson,
Miss., coatings facility of NCI Building. However, the company
resumed shipping within a few days and quickly shifted production
to other facilities. NCI Building also realized a gain of $1
million on the insurance recovery for the damaged equipment in
the fourth quarter. Moreover, the company hopes to receive
further reimbursements, which would be recognized as gains in the
However, management did not provide any specific guidance for
fiscal 2014. Business conditions at architectural firms have
consistently improved in the past several quarters, depicting
upper single-digit year-over-year growth in non-residential new
construction in 2014.
Currently, NCI Building carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
Some better-ranked stocks in the same sector include
James Hardie Industries plc
United Rentals, Inc.
). While James Hardie Industries sports a Zacks Rank #1 (Strong
Buy), Masco and United Rentals have a Zacks Rank #2 (Buy).
JAMES HARDI-ADR (JHX): Free Stock Analysis
MASCO (MAS): Free Stock Analysis Report
NCI BLDG SYSTEM (NCS): Free Stock Analysis
UTD RENTALS INC (URI): Free Stock Analysis
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