Owens Corning Earnings: What To Look For From OC

Building and construction materials manufacturer Owens Corning (NYSE:OC) will be reporting earnings tomorrow morning. Here’s what you need to know.

Owens Corning missed analysts’ revenue expectations by 4.6% last quarter, reporting revenues of $2.79 billion, up 8.8% year on year. It was a slower quarter for the company, with a miss of analysts’ organic revenue estimates.

Is Owens Corning a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Owens Corning’s revenue to grow 22.8% year on year to $3.04 billion, a reversal from the 2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.05 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Owens Corning has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Owens Corning’s peers in the home construction materials segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Trex’s revenues decreased 23.1% year on year, beating analysts’ expectations by 3.7%, and JELD-WEN reported a revenue decline of 13.2%, falling short of estimates by 5.6%. Trex’s stock price was unchanged following the results.

Read our full analysis of Trex’s results here and JELD-WEN’s results here.

Investors in the home construction materials segment have had steady hands going into earnings, with share prices flat over the last month. Owens Corning is down 1.6% during the same time and is heading into earnings with an average analyst price target of $191.01 (compared to the current share price of $178.50).

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