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Gibraltar Industries (ROCK) Down 2% Since Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Gibraltar Industries, Inc. (ROCK - Free Report) . Shares have lost about 2% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is ROCK due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Fourth-Quarter 2017 Results
Gibraltar Industries reported better-than-expected results for fourth-quarter 2017.
Earnings
Quarterly adjusted earnings came in at 41 cents per share, beating the Zacks Consensus Estimate of 34 cents. Also, the bottom line recorded 37% year-over-year growth.
Quarterly earnings for 2017 came in at $1.71 per share, outpacing the Zacks Consensus Estimate of $1.65. The bottom line came in 2.4% higher than the year-ago tally. Gibraltar Industries noted that profitability in the reported quarter largely stemmed from the Tax Cuts and Jobs Act conversion adjustment as well as the company’s operational efficacy-improvement moves.
Revenues
Net sales in the fourth quarter came in at $258.1 million, beating the Zacks Consensus Estimate of $233 million. The top line also improved 11% year over year.
Segmental Details
Revenues of the Residential Products segment came in at $105.3 million in the reported quarter, up 13% year over year.
Quarterly sales of the Industrial and Infrastructure Products segment came in at $49.1 million, down 20% year over year.
Renewable Energy and Conservation segment’s sales were up 34% year over year to $103.7 million in the quarter.
Net sales for 2017 came in at $987 million, surpassing the Zacks Consensus Estimate of $961.6 million. However, the top line slipped 2.1% from the prior year.
Costs and Margins
Cost of sales in the fourth quarter was $201.4 million, up 13.2% year over year. Gross profit margin in the quarter came in at 22%, contracting 120 basis points (bps) year over year.
Selling, general and administrative expenses came in at $34.1 million compared to $43.1 million incurred in the year-ago period. Interest expenses were down 4.9% year over year. Adjusted operating margin in the quarter was 9.2%, up 50 bps year over year.
Gross profit margin for 2017 was 24%, down 30 bps year over year. Adjusted operating margin for 2017 shrunk 10 bps year over year to 10.1%.
Balance Sheet and Cash Flow
Exiting fourth-quarter 2017, Gibraltar Industries had cash and cash equivalents worth $222.3 million compared to $170.2 million recorded on Dec 31, 2016. Long-term debt came in at $209.6 million, marginally up 0.2% recorded at the end of 2016.
In 2017, the company generated cash worth $70.1 million from operating activities, as against $124 million generated in the prior-year quarter. Capital expenditures came in at $11.4 million, decreasing 5.8% year over year.
Outlook
Gibraltar Industries intends to boost its organic growth trajectory on the back of new operational enrichment project implementation, product-innovation initiatives and strategic business buyouts in attractive end-markets.
The company noted that strategic innovation projects and increased demand from all end-markets will continue to drive its revenues in the quarters ahead. Also, the U.S. tax reform will likely benefit margin expansion in the near term.
The company estimates to report revenues within $213-$220 million and adjusted earnings within 23-28 cents per share for first-quarter 2018.
Moreover, the company anticipates generating revenues of more than $1 billion in 2018. Adjusted earnings for the year are projected in the range of $1.96-$2.08 per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter.
At this time, ROCK has an average Growth Score of C. Its Momentum is doing a bit better with a B. The stock was also allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is equally suitable for value and momentum investors while growth investors may want to look elsewhere.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of this revision indicates a downward shift. Notably, ROCK has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Gibraltar Industries (ROCK) Down 2% Since Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Gibraltar Industries, Inc. (ROCK - Free Report) . Shares have lost about 2% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is ROCK due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Fourth-Quarter 2017 Results
Gibraltar Industries reported better-than-expected results for fourth-quarter 2017.
Earnings
Quarterly adjusted earnings came in at 41 cents per share, beating the Zacks Consensus Estimate of 34 cents. Also, the bottom line recorded 37% year-over-year growth.
Quarterly earnings for 2017 came in at $1.71 per share, outpacing the Zacks Consensus Estimate of $1.65. The bottom line came in 2.4% higher than the year-ago tally. Gibraltar Industries noted that profitability in the reported quarter largely stemmed from the Tax Cuts and Jobs Act conversion adjustment as well as the company’s operational efficacy-improvement moves.
Revenues
Net sales in the fourth quarter came in at $258.1 million, beating the Zacks Consensus Estimate of $233 million. The top line also improved 11% year over year.
Segmental Details
Revenues of the Residential Products segment came in at $105.3 million in the reported quarter, up 13% year over year.
Quarterly sales of the Industrial and Infrastructure Products segment came in at $49.1 million, down 20% year over year.
Renewable Energy and Conservation segment’s sales were up 34% year over year to $103.7 million in the quarter.
Net sales for 2017 came in at $987 million, surpassing the Zacks Consensus Estimate of $961.6 million. However, the top line slipped 2.1% from the prior year.
Costs and Margins
Cost of sales in the fourth quarter was $201.4 million, up 13.2% year over year. Gross profit margin in the quarter came in at 22%, contracting 120 basis points (bps) year over year.
Selling, general and administrative expenses came in at $34.1 million compared to $43.1 million incurred in the year-ago period. Interest expenses were down 4.9% year over year. Adjusted operating margin in the quarter was 9.2%, up 50 bps year over year.
Gross profit margin for 2017 was 24%, down 30 bps year over year. Adjusted operating margin for 2017 shrunk 10 bps year over year to 10.1%.
Balance Sheet and Cash Flow
Exiting fourth-quarter 2017, Gibraltar Industries had cash and cash equivalents worth $222.3 million compared to $170.2 million recorded on Dec 31, 2016. Long-term debt came in at $209.6 million, marginally up 0.2% recorded at the end of 2016.
In 2017, the company generated cash worth $70.1 million from operating activities, as against $124 million generated in the prior-year quarter. Capital expenditures came in at $11.4 million, decreasing 5.8% year over year.
Outlook
Gibraltar Industries intends to boost its organic growth trajectory on the back of new operational enrichment project implementation, product-innovation initiatives and strategic business buyouts in attractive end-markets.
The company noted that strategic innovation projects and increased demand from all end-markets will continue to drive its revenues in the quarters ahead. Also, the U.S. tax reform will likely benefit margin expansion in the near term.
The company estimates to report revenues within $213-$220 million and adjusted earnings within 23-28 cents per share for first-quarter 2018.
Moreover, the company anticipates generating revenues of more than $1 billion in 2018. Adjusted earnings for the year are projected in the range of $1.96-$2.08 per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter.
Gibraltar Industries, Inc. Price and Consensus
Gibraltar Industries, Inc. Price and Consensus | Gibraltar Industries, Inc. Quote
VGM Scores
At this time, ROCK has an average Growth Score of C. Its Momentum is doing a bit better with a B. The stock was also allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is equally suitable for value and momentum investors while growth investors may want to look elsewhere.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of this revision indicates a downward shift. Notably, ROCK has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.