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Tecnoglass (TGLS) Doubles Reach, Enters Vinyl Window Market

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Tecnoglass Inc. (TGLS - Free Report) entered the vinyl window market by signing a long-term supply deal with a premier global manufacturer to procure vinyl frame profiles. The decision to expand in the vinyl window market will double TGLS’ market reach.

The expansion aligns directly with Tecnoglass' ongoing diversification strategy and is expected to solidify its position as an industry leader in architectural windows and glass solutions.

TGLS will reshape the profiles into custom-made specifications and use its internally produced glass and newly installed vinyl assembling lines to manufacture and distribute cutting-edge vinyl windows for new and existing customers.

Backed by its comprehensive vertically integrated manufacturing platform and growing networks, the company expects to start production and deliveries in November.

In the year-to-date period, shares of the company have gained 14.8% compared with the Zacks Building Products - Retail industry’s 8.4% decline. Earnings estimates for 2023 have increased to $4.18 per share from $4.15 over the past 30 days. The estimated figure reflects 25.9% year-over-year growth.

Investment Strategy Bode Well

Tecnoglass has benefited from its strategic investments in the facilities, solid business model, and healthy customer relationship moves. As the company evolved throughout these years, it diversified its business with new customers, products, end markets and geographies, and the increased capacity from these actions. The diversification will enable the company to meet the rising demand for its high-performance architectural glass, window and aluminum products.

These facility investments to expand operational capacity have boosted the installed production base by more than 40%. This on-time and on-budget project is another milestone for Tecnoglass. It helps the company to meet the ever-growing demand for high-performance products while reducing lead times and waste.

Recently, it announced the relocation of its global headquarters to Miami, FL, where it sells the most innovative architectural high-end window, glass and aluminum products.

The company now expects revenues to grow in $830-$855 million range, representing 18% growth at the midpoint and entirely organic. Adjusted EBITDA is likely to be within $320-$335 million. This implies growth of approximately 23% at the midpoint, driven by the strong year-to-date results and expectation to deliver solid margins for the rest of 2023.

Zacks Rank & Key Picks

TGLS currently carries a Zacks Rank #3 (Hold).

Here are some top-ranked stocks in the Zacks Retail-Wholesale sector.

BJ's Restaurants, Inc. (BJRI - Free Report) currently sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 121.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for BJRI’s 2023 sales and EPS indicates 5.6% and 423.5% growth, respectively, from the year-ago period’s levels.

Arcos Dorados Holdings Inc. (ARCO - Free Report) currently carries a Zacks Rank #2. ARCO has a long-term earnings growth rate of 9.5%.

The Zacks Consensus Estimate for Arcos Dorados’ 2023 sales and EPS suggests rises of 19% and 11.6%, respectively, from the year-ago period’s levels.

Chuy's Holdings, Inc. (CHUY - Free Report) presently has a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 26.6%, on average.

The Zacks Consensus Estimate for CHUY’s 2023 sales and EPS implies increases of 9.5% and 32.9%, respectively, from the year-ago period’s levels.

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