Back to top

Analyst Blog

Gibraltar Industries, Inc. (ROCK - Analyst Report) reported adjusted earnings per share of 31 cents in the third quarter of 2013, up 29.2% from 24 cents in the year-ago quarter. It also surpassed the Zacks Consensus Estimate of 25 cents by 24.0%. The increase in earnings is attributable to improved revenues in the quarter.

On a GAAP basis, Gibraltar Industries reported a loss of 44 cents per share, compared with earnings of 23 cents per share in the year-ago quarter.

Revenues: In the reported quarter, Gibraltar Industries’ net sales were $217.4 million, up 5.8% year over year. The year-over-year increase in revenues was primarily due to accretive acquisitions and improvement in the residential new construction market. However, revenues missed the Zacks Consensus Estimate of $225.0 million.

In the third quarter, Gibraltar Industries experienced a negative trend in the industrial and infrastructure markets, which led to a year-over-year decline in the organic sales.  

Costs/Margins: Adjusted gross profit margin in the quarter increased 16 basis points to 19.9%. Adjusted selling, general and administrative (SG&A) expenses for the quarter were $24.7 million, compared with $24.3 million in the year-ago comparable quarter.

Gibraltar Industries’ adjusted operating margin of 8.5% increased from 7.9% reported in the year-ago comparable quarter.

Balance Sheet/Cash Flow: Exiting the third quarter of 2013, Gibraltar Industries’ cash and cash equivalents were approximately $80.8 million, compared with $44.6 million in the previous quarter. Total long-term debt balance remained flat with the previous quarter at $213.6 million.

For the nine months ended Sep 30, 2013, Gibraltar Industries generated cash from operations of $37.9 million, against $26.7 million in the nine months ended Sep 30, 2012. Capital expenditure incurred in the first nine months of 2013 totaled $8.8 million versus $6.9 million in the year-ago comparable period.

Outlook: In the coming quarters, the company expects its acquired businesses to contribute significantly to revenues. Based on this, management projects sales growth of 4.5% in 2013 with margins roughly flat, compared with 2012. Adjusted earnings per share are expected in the range of 63 cents to 66 cents in 2013.

In 2014, Gibraltar Industries anticipates a rise in demand for building products, which is expected to boost the revenues.

Other Stocks to Consider

Gibraltar Industries currently carries a Zacks Rank #3 (Hold). Other stocks worth considering in the machinery industry are Gerdau S.A. (GGB - Analyst Report), Masco Corp. (MAS - Analyst Report) and Trex Co. Inc. (TREX - Snapshot Report). All of these carry a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.80 +7.04%
BANCO DO BR… BDORY 14.74 +5.66%
AIR INDUSTR… AIRI 9.99 +4.15%
EQT MIDSTRE… EQM 98.14 +3.38%
WEATHERFORD… WFT 23.64 +3.10%