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Griffon (GFF) Gears Up to Report Q2 Earnings: What to Expect
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Griffon Corporation (GFF - Free Report) is expected to release second-quarter fiscal 2024 (ended Mar 31, 2024) results on May 8.
The company's earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 42%. In the last reported quarter, its earnings of $1.07 per share surpassed the Zacks Consensus Estimate of 78 cents by 37.2%.
Image Source: Zacks Investment Research
In the past three months, GFF’s shares have risen 2.7% against the industry’s decline of 4%.
Let’s see how things have shaped up for Griffon this earnings season.
Factors to Influence Griffon’s Q2 Results
Griffon’s fiscal second-quarter performance is likely to have been aided by increased demand for housing, higher repair and remodel activities and solid commercial construction demand.
The Home and Building Products (HBP) segment is expected to have reflected higher revenues on the back of improved customer orders, and favorable pricing and mix in both commercial and residential markets. Increased investment in marketing, along with strong residential and commercial channels, is likely to have boosted HBP’s performance in the to-be-reported quarter.
The Consumer and Professional Products (CPP) segment has been undergoing restructuring changes for expanding its global sourcing strategy to include material handling, long-handled tools, and wood storage and organization product lines. With the transition of these product lines to an asset-light structure, CPP’s operations are expected to have benefited from a more flexible and cost-effective sourcing model.
These actions are likely to have boosted the segment’s EBITDA margins. These are also expected to have enhanced free cash flow through improved working capital and reduced capital expenditures. However, the CPP segment’s performance is likely to have put up a weak show in the quarter under review due to lower volume on account of soft consumer demand in North America.
Given GFF’s substantial international operations, foreign-currency woes might have hurt its top line in the quarter under discussion. Also, high costs associated with restructuring actions are likely to have dented its bottom line.
The Zacks Consensus Estimate for revenues is pegged at $621 million, indicating a decrease of 12.7% from the year-ago quarter's reported number. The consensus estimate for earnings of 94 cents per share indicates a decline of 22.3% from the year-earlier levels.
Our proven model does not conclusively predict an earnings beat for GFF this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: Griffon has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate is pegged at 94 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are three stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.
Graco Inc. (GGG - Free Report) has an Earnings ESP of +0.22% and a Zacks Rank #3. It is slated to release first-quarter 2024 results on Jul 24.
DNOW Inc. (DNOW - Free Report) has an Earnings ESP of +2.13% and carries a Zacks Rank #3. It is scheduled to report first-quarter 2024 numbers on May 10. DNOW delivered a trailing four-quarter earnings surprise of 15.6%, on average.
Apogee Enterprises, Inc. (APOG - Free Report) has an Earnings ESP of +4.04% and a Zacks Rank #3. It is set to post first-quarter fiscal 2025 (ending May 2024) figures on Jun 28. APOG delivered a trailing four-quarter earnings surprise of 19.4%, on average.
Image: Bigstock
Griffon (GFF) Gears Up to Report Q2 Earnings: What to Expect
Griffon Corporation (GFF - Free Report) is expected to release second-quarter fiscal 2024 (ended Mar 31, 2024) results on May 8.
The company's earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 42%. In the last reported quarter, its earnings of $1.07 per share surpassed the Zacks Consensus Estimate of 78 cents by 37.2%.
Image Source: Zacks Investment Research
In the past three months, GFF’s shares have risen 2.7% against the industry’s decline of 4%.
Let’s see how things have shaped up for Griffon this earnings season.
Factors to Influence Griffon’s Q2 Results
Griffon’s fiscal second-quarter performance is likely to have been aided by increased demand for housing, higher repair and remodel activities and solid commercial construction demand.
The Home and Building Products (HBP) segment is expected to have reflected higher revenues on the back of improved customer orders, and favorable pricing and mix in both commercial and residential markets. Increased investment in marketing, along with strong residential and commercial channels, is likely to have boosted HBP’s performance in the to-be-reported quarter.
The Consumer and Professional Products (CPP) segment has been undergoing restructuring changes for expanding its global sourcing strategy to include material handling, long-handled tools, and wood storage and organization product lines. With the transition of these product lines to an asset-light structure, CPP’s operations are expected to have benefited from a more flexible and cost-effective sourcing model.
These actions are likely to have boosted the segment’s EBITDA margins. These are also expected to have enhanced free cash flow through improved working capital and reduced capital expenditures. However, the CPP segment’s performance is likely to have put up a weak show in the quarter under review due to lower volume on account of soft consumer demand in North America.
Given GFF’s substantial international operations, foreign-currency woes might have hurt its top line in the quarter under discussion. Also, high costs associated with restructuring actions are likely to have dented its bottom line.
The Zacks Consensus Estimate for revenues is pegged at $621 million, indicating a decrease of 12.7% from the year-ago quarter's reported number. The consensus estimate for earnings of 94 cents per share indicates a decline of 22.3% from the year-earlier levels.
Griffon Corporation Price and EPS Surprise
Griffon Corporation price-eps-surprise | Griffon Corporation Quote
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for GFF this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: Griffon has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate is pegged at 94 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Griffon presently flaunts a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With Favorable Combination
Here are three stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.
Graco Inc. (GGG - Free Report) has an Earnings ESP of +0.22% and a Zacks Rank #3. It is slated to release first-quarter 2024 results on Jul 24.
DNOW Inc. (DNOW - Free Report) has an Earnings ESP of +2.13% and carries a Zacks Rank #3. It is scheduled to report first-quarter 2024 numbers on May 10. DNOW delivered a trailing four-quarter earnings surprise of 15.6%, on average.
Apogee Enterprises, Inc. (APOG - Free Report) has an Earnings ESP of +4.04% and a Zacks Rank #3. It is set to post first-quarter fiscal 2025 (ending May 2024) figures on Jun 28. APOG delivered a trailing four-quarter earnings surprise of 19.4%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.