We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Gibraltar (ROCK) Shares Rally 13.2% on Q2 Earnings Beat
Read MoreHide Full Article
Gibraltar Industries, Inc.’s (ROCK - Free Report) shares jumped more than 13% on Aug 5, after it reported better-than-expected results for second-quarter 2020. The company’s earnings and sales not only topped analysts’ expectations but also improved year over year on persistent strength across the business, particularly in the Renewable Energy & Conservation and Residential Products units.
Inside the Headlines
Gibraltar reported adjusted earnings of 84 cents per share, which handily topped the Zacks Consensus Estimate of 40 cents by 110%. The bottom line increased 15.1% year over year, supported by growth in Renewable Energy & Conservation, as well as Residential Products segments.
Net sales surpassed the consensus mark by 25.7% and increased 8.8% year over year to $285.8 million, owing to 1.6% organic growth driven by its Renewable Energy & Conservation segment. Acquisitions contributed 7.2% to top-line growth.
The company’s backlog was $277 million (at quarter-end), up 14% year over year owing to increased participation in Renewable Energy and Conservation, as well as Residential Products.
Gibraltar Industries, Inc. Price, Consensus and EPS Surprise
Residential Products: Net sales in the segment grew 7% from the year-ago period to $139.5 million for the quarter. The upside was mainly due to solid repair and remodel activity.
Adjusted operating margins improved 400 basis points (bps) to 20.2%. Strong execution, product mix, improved material cost alignment and 80/20 simplification initiatives aided the margins.
Industrial and Infrastructure Products: Sales in the segment decreased 14.4% year over year to $48.1 million owing to lower demand for core industrial products during the pandemic.
Nonetheless, adjusted operating margins expanded 490 bps to 14.5%, backed by a more favorable mix of higher-margin products and solid execution of 80/20 profit improvement efforts.
Renewable Energy and Conservation: Quarterly net sales in the segment rose 29.3% year over year (4.2% on an organic basis) to $98.3 million. Apeks Supercritical, Thermo Energy Solutions and Delta Separations acquisitions contributed 25.1% to top-line growth. The uptick can be attributed to core business strength, driven by participation gains, volume leverage, productivity improvements and favorable price/material cost alignment. Segment backlog grew 18% year over year owing to healthy market dynamics, participation gains and the recent acquisitions.
However, adjusted operating margins of 170% in the segment were down 170 bps.
Costs & Margins
Selling, general and administrative expenses increased 1.9% year over year to $37.7 million. As a percentage of sales, the metric decreased 90 bps year over year to 13.2%. Adjusted operating margin of 12.9% expanded 130 bps year over year.
Balance Sheet & Cash Flow
As of Jun 30, 2020, Gibraltar had cash and cash equivalents worth $120.9 million compared with $191.4 million at 2019-end.
The company used $7.3 million cash in operations for the first six months of 2020 versus $6.5 million cash provided by operating activities a year ago.
Some better-ranked stocks in the same space include Masco Corporation (MAS - Free Report) , Owens Corning Inc. (OC - Free Report) and TopBuild Corp. (BLD - Free Report) , each sporting a Zacks Rank #1.
Masco has three-five year expected earnings rate of 14.9%.
Owens Corning and TopBuild topped the consensus mark in all the last four quarters, with the average surprise being 63.8% and 16%, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
Gibraltar (ROCK) Shares Rally 13.2% on Q2 Earnings Beat
Gibraltar Industries, Inc.’s (ROCK - Free Report) shares jumped more than 13% on Aug 5, after it reported better-than-expected results for second-quarter 2020. The company’s earnings and sales not only topped analysts’ expectations but also improved year over year on persistent strength across the business, particularly in the Renewable Energy & Conservation and Residential Products units.
Inside the Headlines
Gibraltar reported adjusted earnings of 84 cents per share, which handily topped the Zacks Consensus Estimate of 40 cents by 110%. The bottom line increased 15.1% year over year, supported by growth in Renewable Energy & Conservation, as well as Residential Products segments.
Net sales surpassed the consensus mark by 25.7% and increased 8.8% year over year to $285.8 million, owing to 1.6% organic growth driven by its Renewable Energy & Conservation segment. Acquisitions contributed 7.2% to top-line growth.
The company’s backlog was $277 million (at quarter-end), up 14% year over year owing to increased participation in Renewable Energy and Conservation, as well as Residential Products.
Gibraltar Industries, Inc. Price, Consensus and EPS Surprise
Gibraltar Industries, Inc. price-consensus-eps-surprise-chart | Gibraltar Industries, Inc. Quote
Segmental Details
Residential Products: Net sales in the segment grew 7% from the year-ago period to $139.5 million for the quarter. The upside was mainly due to solid repair and remodel activity.
Adjusted operating margins improved 400 basis points (bps) to 20.2%. Strong execution, product mix, improved material cost alignment and 80/20 simplification initiatives aided the margins.
Industrial and Infrastructure Products: Sales in the segment decreased 14.4% year over year to $48.1 million owing to lower demand for core industrial products during the pandemic.
Nonetheless, adjusted operating margins expanded 490 bps to 14.5%, backed by a more favorable mix of higher-margin products and solid execution of 80/20 profit improvement efforts.
Renewable Energy and Conservation: Quarterly net sales in the segment rose 29.3% year over year (4.2% on an organic basis) to $98.3 million. Apeks Supercritical, Thermo Energy Solutions and Delta Separations acquisitions contributed 25.1% to top-line growth. The uptick can be attributed to core business strength, driven by participation gains, volume leverage, productivity improvements and favorable price/material cost alignment. Segment backlog grew 18% year over year owing to healthy market dynamics, participation gains and the recent acquisitions.
However, adjusted operating margins of 170% in the segment were down 170 bps.
Costs & Margins
Selling, general and administrative expenses increased 1.9% year over year to $37.7 million. As a percentage of sales, the metric decreased 90 bps year over year to 13.2%. Adjusted operating margin of 12.9% expanded 130 bps year over year.
Balance Sheet & Cash Flow
As of Jun 30, 2020, Gibraltar had cash and cash equivalents worth $120.9 million compared with $191.4 million at 2019-end.
The company used $7.3 million cash in operations for the first six months of 2020 versus $6.5 million cash provided by operating activities a year ago.
Zacks Rank & Key Picks
Currently, Gibraltar currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the same space include Masco Corporation (MAS - Free Report) , Owens Corning Inc. (OC - Free Report) and TopBuild Corp. (BLD - Free Report) , each sporting a Zacks Rank #1.
Masco has three-five year expected earnings rate of 14.9%.
Owens Corning and TopBuild topped the consensus mark in all the last four quarters, with the average surprise being 63.8% and 16%, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>