Owens Corning Earnings: Here’s Why Investors are Happy Now

Owens Corning (NYSE:OC) delivered a profit and beat Wall Street’s expectations, AND met the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 4.59%.

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Owens Corning Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 222.22% to $0.29 in the quarter versus EPS of $0.09 in the year-earlier quarter.

Revenue: Rose 0.3% to $1.35 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Owens Corning reported adjusted EPS income of $0.29 per share. By that measure, the company beat the mean analyst estimate of $0.21. It met the average revenue estimate of $1.35 billion.

Quoting Management: “Owens Corning delivered a strong first quarter with margin improvement in both of our Building Materials businesses,” said Chairman and Chief Executive Officer Mike Thaman. “We grew first-quarter adjusted EBIT by $34 million, driven by strong Roofing performance. Insulation demonstrated strong price execution and is on track for full-year profitability and double-digit revenue growth in 2013. And, Composites completed its asset ramp-up and is positioned to achieve operating leverage that supports improved year-over-year margins for the business.

Key Stats (on next page)…

Revenue increased 16.48% from $1.16 billion in the previous quarter. EPS increased 163.64% from $0.11 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 $0.73 to a profit $0.7. For the current year, the average estimate has moved down from a profit of $2.13 to a profit of $1.97 over the last ninety days.

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