Why Gibraltar (ROCK) Shares Are Sliding Today
What Happened?
Shares of renewable energy and infrastructure solutions provider Gibraltar Industries (NASDAQ:ROCK) fell 5.6% in the morning session after the company provided underwhelming preliminary earnings results highlighting headwinds (driven by trade and regulatory uncertainties following ongoing investigations) in the solar industry and a continued slowdown in the residential market.
Notably, the company lowered full-year sales guidance to a range of $1,310m - $1,330m (vs. previous guidance of $1,380m - $1,420m). Similarly, full-year non-GAAP EPS guidance was lowered to $4.11 - $4.25 (vs. the previous estimate of $4.57 - $4.82). As a result, some weaknesses are expected to be felt in the third quarter, as Q3'2024 preliminary sales and EPS results fell below Wall Street's expectations. Overall, the updates are concerning and hint at potential challenges in the near term.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Gibraltar? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Gibraltar’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Gibraltar is down 15.3% since the beginning of the year, and at $66.97 per share, it is trading 23.2% below its 52-week high of $87.18 from February 2024. Investors who bought $1,000 worth of Gibraltar’s shares 5 years ago would now be looking at an investment worth $1,507.
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