Gibraltar Industries Earnings: Here’s Why the Stock is Falling Now

Gibraltar Industries, Inc. (NASDAQ:ROCK) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 4.42%.

Gibraltar Industries, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 7.14% to $0.26 in the quarter versus EPS of $0.28 in the year-earlier quarter.

Revenue: Rose 2.17% to $224.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Gibraltar Industries, Inc. reported adjusted EPS income of $0.26 per share. By that measure, the company missed the mean analyst estimate of $0.32. It missed the average revenue estimate of $243.1 million.

Quoting Management: “We continued to see improvement as anticipated in some key areas of our business in the second quarter, but these positive developments were offset by lower-than-expected organic revenues,” said Chairman and Chief Executive Officer Brian Lipke. “Our guidance for the quarter was for consolidated revenues to increase 9% year-over-year, led by incremental sales from our recent acquisitions. Although we did see the double-digit growth in the multi-family building market that we anticipated, sales in all of our other end markets were lower than our forecast. Growth in the infrastructure market was modestly slower as expected; however, industrial product revenues were significantly slower. Repair and remodel activity in the residential and low-rise commercial building markets also fell short of our expectations. As a result, our organic sales were down 5% year-over-year, and our total revenues grew only 2% from the second quarter last year.”

Key Stats (on next page)…

Revenue increased 14.08% from $196.8 million in the previous quarter. EPS increased 550% from $0.04 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.4 to a profit $0.35. For the current year, the average estimate has moved down from a profit of $1.03 to a profit of $0.83 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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