Building and construction materials manufacturer Owens Corning (NYSE: OC) will be announcing earnings results this Wednesday morning. Here’s what investors should know.
Owens Corning beat analysts’ revenue expectations last quarter, reporting revenues of $2.27 billion, down 10.5% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS and EBITDA estimates.
Is Owens Corning a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Owens Corning’s revenue to decline 3.6% year on year, a reversal from the 10% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Owens Corning has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Owens Corning’s peers in the home construction materials segment, some have already reported their Q2 results, giving us a hint as to what we can expect. JELD-WEN posted flat year-on-year revenue, beating analysts’ expectations by 3.2%, and Simpson reported revenues up 6.3%, topping estimates by 1.9%. Simpson traded up 2.6% following the results.
Read our full analysis of JELD-WEN’s results here and Simpson’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the home construction materials stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2% on average over the last month. Owens Corning is down 3.6% during the same time and is heading into earnings with an average analyst price target of $164.57 (compared to the current share price of $141.53).
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