Headwaters Incorporated (NASDAQ:HW) swung to a loss in the third quarter, missing analysts’ forecast. Headwaters, Inc provides products, technologies and services in three industries: light building products, heavy construction materials and energy technology.
Headwaters Incorporated Earnings Cheat Sheet for the Third Quarter
Results: Swung to a loss of $6.3 million (10 cents per diluted share) in the quarter. Headwaters Incorporated had a net income of $1.5 million or 3 cents per share in the year earlier quarter.
Revenue: Fell 10.4% to $172.3 million from the year earlier quarter.
Actual vs. Wall St. Expectations: HW fell short of the mean analyst estimate of a loss of one cent per share. It fell short of the average revenue estimate of $186.2 million.
Quoting Management: “The most significant factor that impacted our third quarter results was the slow start of the construction season due to the unseasonably poor weather that persisted for all of April and into the first part of May,” said Kirk A. Benson, Chairman and Chief Executive Officer of Headwaters. “This year the uptick in sales that we normally see in April did not begin until May, but by June, revenue was following normal seasonal trends. Recognizing that our end markets continue to be weak and our margins have been impacted by rising commodity costs, we are developing an aggressive restructuring plan to improve free cash flow and reduce our financial leverage. Our prior restructuring efforts have been successful and we intend to apply an aggressive approach to implementing further cost savings initiatives. We have adequate liquidity and no scheduled debt maturities prior to 2014, so we are well positioned to continue to navigate a less than robust recovery in our end markets.”
The company has now missed analyst estimates for the last four quarters. It fell short by 12 cents in the second quarter, by 6 cents in the first quarter, and by 14 cents in the fourth quarter of the last fiscal year.
Revenue has fallen in the past two quarters. In the second quarter, revenue declined 0.8% to $127.1 million from the year earlier quarter.
Competitors to Watch: PGT, Inc. (NASDAQ:PGTI), NCI Building Systems, Inc. (NYSE:NCS), Apogee Enterprises, Inc. (NASDAQ:APOG), Armstrong World Industries, Inc. (NYSE:AWI), Owens Corning (NYSE:OC), Griffon Corporation (NYSE:GFF), Patrick Industries, Inc. (NASDAQ:PATK).
(Source: Xignite Financials)