NCI Building Systems Earnings: Here’s Why Investors are Selling Shares Now

NCI Building Systems Inc. (NYSE:NCS) had a loss 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 16.56%.

NCI Building Systems Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.19 in the quarter versus EPS of $-0.04 in the year-earlier quarter.

Revenue: Rose 6.27% to $317.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: NCI Building Systems Inc. reported adjusted EPS loss of $0.19 per share. By that measure, the company missed the mean analyst estimate of $-0.03. It missed the average revenue estimate of $351.43 million.

Quoting Management: Norman C. Chambers, Chairman, President and Chief Executive, commented, “We generated sequential improvement in our operating results in the third quarter despite a lack of meaningful pick-up in demand for nonresidential construction. The absence of any strong economic momentum continues to delay many projects from moving to the construction phase. As a result, our overall volumes are lagging our internal expectations as most segments of nonresidential construction continue to be impacted by flat-to-lower demand.

Key Stats (on next page)…

Revenue increased 8.11% from $293.4 million in the previous quarter. EPS decreased to $-0.19 in the quarter versus EPS of $-0.28 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 $0.21 to a profit $0.17. For the current year, the average estimate has moved down from a profit of $0.19 to a loss of $0.06 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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