Headwaters Inc. Earnings: Loss Widens

Headwaters Incorporated (NYSE:HW) reported its results for the first quarter. Headwaters provides products, technologies and services in three industries: light building products, heavy construction materials and energy technology.

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Headwaters Incorporated Earnings Cheat Sheet for the First Quarter

Results: Loss widened to $23.7 million (39 cents per diluted share) from $20.7 million (loss of 34 cents per share) in the same quarter a year earlier.

Revenue: Rose 1.2% to $137.4 million from the year earlier quarter.

Actual vs. Wall St. Expectations: HW reported an adjusted net loss of 22 cents per share. By that measure, the company fell short of the mean analyst estimate of a loss of 13 cents per share. Analysts were expecting revenue of $139.5 million.

Quoting Management: “We are pleased to report that our core business segments, light building products and heavy construction materials, completed the strongest first quarter performance in over three years,” said Kirk A. Benson, Chairman and Chief Executive Officer of Headwaters. “On a year-over-year basis, gross margin improved by more than 160 basis points and operating expenses declined by 8.6%. We had a great first quarter, and we are excited about the remainder of the current year because we are realizing the benefits from the restructuring program implemented in the latter half of 2011.

Key Stats:

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 7 cents versus a mean estimate of net income of 6 cents per share.

Looking Forward: Analysts seem more positive about the company’s results for the next quarter than three months ago. The average estimate for the second quarter has moved from a loss of 29 cents a share to a loss of 26 cents over the last ninety days. For the fiscal year, the average estimate has moved from a loss of 50 cents a share to a loss of 24 cents over the last ninety days.

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) and Patrick Industries, Inc. (NASDAQ:PATK).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com