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PGT Innovations (PGTI) Q4 Earnings, Revenues Beat Estimates

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PGT Innovations, Inc. (PGTI) delivered a year-over-year improvement of 80% in fourth-quarter 2017 earnings to 18 cents per share. Earnings also surpassed the Zacks Consensus Estimate of 14 cents per share.

Including one-time items, the company reported earnings of 39 cents per share compared with 8 cents earned in the year-ago quarter.

Net sales in the quarter grew 22.5% year over year to $134 million and also beat the Zacks Consensus Estimate of $118 million.

PGT, Inc. Price, Consensus and EPS Surprise

PGT, Inc. price-consensus-eps-surprise-chart | PGT, Inc. Quote

Operational Update

Cost of sales went up 17% year over year to $91 million. Gross profit rose 36% to $43 million from the year-ago quarter. Gross margin increased 320 basis points (bps) year over year to 32%.

Selling, general and administrative expenses surged 27% to $26 million from $21 million in the prior-year quarter. The company's operating income came in at $17 million, up from $11 million in the year-ago quarter. Adjusted EBITDA was at $23 million compared with $16 million in the prior-year quarter. Adjusted margin was 17.2% compared with 14.9% in the year-ago quarter.

Financial Performance

PGT Innovations posted cash and cash equivalents of $34 million as of Dec 31, 2017, compared with $39 million as of Dec 31, 2016. The company's long-term debt decreased to $213 million as of Dec 31, 2018 from $248 million as of Dec 31, 2017.

Guidance

Given its leading market position, highly-innovative product offerings, and increased advertising, PGT Innovations is set to capitalize on increased demand for impact-resistant products stemming from heightened, post-Irma awareness. The company is likely to deliver improved performance in 2018 by following its strategy of profitable growth and disciplined capital allocation.

It has provided net sales guidance range of $550-$575 million, which reflects an increase of 8-13%. Adjusted EBITDA is likely to lie between $95 million and $105 million, reflecting an increase of 10-22%. Earnings per share will range between 81 cents and 98 cents.

Over the past three months, PGT Innovations has outperformed the industry it belongs to. The company's shares have gone up 9.1%, ahead of the industry's growth of 2.1%.

PGT currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the sector include Boise Cascade Company BCC , MasTec, Inc. MTZ and LSI Industries Inc. LYTS . While Boise Cascade Company and MasTec flaunt a Zacks Rank #1 (Strong Buy), LSI Industries carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .

Boise Cascade has an expected long-term earnings growth rate of 18.5%. Its shares have gone up 12% in the past three months.

MasTec has an expected long-term earnings growth rate of 14.0%. Its shares have gone up 20% in the past three months.

LSI Industries has an expected long-term earnings growth rate of 25.0%. Its shares have advanced 21% in the last three months.

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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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