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Gibraltar Industries (ROCK) Tops Q4 Earnings & Revenues

Gibraltar Industries, Inc.ROCK reported better-than-expected fourth-quarter 2016 results.

Over the last six months, shares of this Zacks Rank #3 (Hold) stock recorded yield of 6.00% - outperforming 5.19% gain provided by the Zacks categorized Building & Construction Products Miscellaneous industry.

Earnings

Quarterly adjusted earnings of 30 cents per share surpassed the Zacks Consensus Estimate of 25 cents. The figure also came higher than the year-ago tally of 29 cents.

Full-year 2016 adjusted earnings came in at $1.67 per share, higher than the prior-year tally of $1.09 per share.

Revenues

Gibraltar Industries' net sales were roughly $232 million in the quarter, marginally surpassing the Zacks Consensus Estimate of $230 million. However, the top line fell short of the year-earlier figure of $282 million.

Gross profit margin expanded 490 basis points (bps) to 23.2%. Selling, general and administrative (SG&A) expenses were $43.1 million, up from $42.2 million in the prior-year quarter. Gibraltar Industries reported adjusted operating margin of 8.7% in the quarter, up 240 bps year over year.

Full-year 2016 revenues came in at $1,008 million, lower than $1,041 recorded in the year-ago period.

Gross profit margin for full-year 2016 came in at 24.3%, up 630 bps year over year. In addition, adjusted operating margin for 2016 was 10%, up 340 bps year over year.

Segment Details

Residential Products segment generated revenues of around $93 million, down 13% year over year. The downside was witnessed due to the completion of a two-year long contract for centralized mailboxes in Dec 2015.

Industrial and Infrastructure Products yielded revenues of approximately $62 million, down 27% year over year. The decline stemmed from the divestiture of the company's industrial business in Europe, and lower volume of orders accrued due to the dismal conditions prevailing in the commodity and energy-related markets.

The Renewable Energy & Conservation segment's revenues came in at about $77 million in the quarter under review, down 14% year over year. The segment's top-line performance was stronger in 2015 due to higher volume gained as a result of decline in the U.S. federal investment tax credit.

Other Financial Aspects

Gibraltar Industries exited the fourth quarter with cash and cash equivalents of $170.2 million, up from $68.9 million at year-end 2015. Long-term debt was $209.2 million, slightly up from $208.9 million recorded at the end of 2015.

In 2016, Gibraltar Industries generated $122.7 million of cash from operating activities compared with $86.7 million generated in the year-earlier period. Capital expenditure was $10.8 million, down from $12.4 million recorded in Dec 31, 2015.

Outlook

Moving ahead, Gibraltar Industries aims to improve its results through a new four-pillar growth strategy. This program involves operational improvements, product innovation, strategic acquisitions and superior portfolio management. The company intends to enhance its profitability through its 80/20 simplification scheme.

However, the company believes that certain factors such as increased innovation expenses, input price inflation and conclusion of business for certain product lines might weigh over future top- and bottom-line performances.

Based on the existing market conditions, Gibraltar Industries estimates to report adjusted earnings within the range of 17-21 cents for first-quarter 2017.

The company projects to generate revenues of roughly $1 billion in 2017 and anticipates adjusted earnings within the range of $1.75-$1.85 per share for this year.

Key Picks

Some better-ranked stocks within the industry are listed below:

Boise Cascade Company BCC has a whopping average earnings surprise of +436.26% and currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Louisiana-Pacific Corporation LPX presently sports a Zacks Rank #1 and has an average earnings surprise of +66.28%.

NVR, Inc. NVR also boasts a Zacks Rank #1 and has an average earnings surprise of +0.90%.

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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 Nasdaq, Inc.


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

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