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Gibraltar Industries, Inc. (ROCK - Analyst Report) reported adjusted earnings per share of 26 cents in the second quarter of 2013, down 7.1% from 28 cents in the year-ago quarter. It also missed the Zacks Consensus Estimate of 31 cents by 16.1%. The decrease in earnings is attributed to lower-than-expected revenues in the quarter.

On a GAAP basis, Gibraltar reported earnings of 25 cents per share, declining by a penny year over year.

Revenues: In the reported quarter, net sales were $224.5 million, up 2.2% year over year. The year-over-year increase in revenues was primarily due to accretive acquisitions, offset by a reduction in organic sales. However, revenues comprehensively missed the Zacks Consensus Estimate of $243.0 million.

Gibraltar’s repair and remodeling activities in infrastructure as well as residential and low-rise commercial buildings markets were below expectations, leading to a 5.0% decline in organic revenues.

Costs/Margins: Adjusted gross profit margin in the quarter increased 70 basis points to 20.2%. Adjusted selling, general and administrative (SG&A) expenses for the quarter were $28.3 million, compared with $25.4 million in the year-ago comparable quarter.

Gibraltar’s adjusted operating margin of 7.6% decreased from 8.0% reported in the year-ago comparable quarter due to a hike in operating expenses.

Balance Sheet/Cash Flow: Exiting the second quarter of 2013, Gibraltar’s cash and cash equivalents were approximately $44.6 million, compared with $30.3 million in the previous quarter. Total long-term debt balance dropped marginally to $213.6 million against $214.0 million in the preceding quarter.

For the six months ended Jun 30, 2013, Gibraltar generated cash from operations of $5.3 million, against cash used in operations of $2.0 million in the six months ended Jun 30, 2012. Capital expenditure incurred in the first half of 2013 totaled $4.7 million versus $4.6 million in the year-ago comparable period.

Outlook: Gibraltar experienced lower-than-expected demand in the first half of 2013. Although the company expects its acquired businesses to contribute significantly to revenues in the coming quarters, it is a tad bearish about organic growth in revenues. It is also expected that Gibraltar’s high revenue earner, industrial markets, will face weakness in demand and pricing in the coming quarters. As a result, in 2013, the company expects margins and earnings to fall below 2012 levels, with a modest increase in sales, led by acquisitions. Earnings per share in 2013 are expected to be in the range of 54 cents to 64 cents.

Other Stocks to Consider

Universal Stainless & Alloy Products Inc. (USAP - Snapshot Report) released its second-quarter results on Jul 31, 2013. The company reported earnings per share of 6 cents, missing the Zacks Consensus Estimate of 16 cents by 62.5%.

AK Steel Holding Corporation (AKS - Analyst Report) released its second-quarter results on Jul 23, 2013. The company reported a loss per share of 15 cents, narrower than the Zacks Consensus Estimate of a loss of 55 cents by 57.1%.

Nucor Corporation (NUE - Analyst Report) released its second-quarter results on Jul 18, 2013. The company reported earnings per share of 27 cents, missing the Zacks Consensus Estimate of 30 cents by 10.0%.

Gibraltar currently carries a Zacks Rank #4 (Sell).

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