Winners And Losers Of Q2: Tecnoglass (NYSE:TGLS) Vs The Rest Of The Building Materials Stocks
Wrapping up Q2 earnings, we look at the numbers and key takeaways for the building materials stocks, including Tecnoglass (NYSE:TGLS) and its peers.
Traditionally, building materials companies have built competitive advantages with economies of scale, brand recognition, and strong relationships with builders and contractors. More recently, advances to address labor availability and job site productivity have spurred innovation. Additionally, companies in the space that can produce more energy-efficient materials have opportunities to take share. However, these companies are at the whim of construction volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates. Additionally, the costs of raw materials can be driven by a myriad of worldwide factors and greatly influence the profitability of building materials companies.
The 8 building materials stocks we track reported a solid Q2. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was 2.9% above.
Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation. Thankfully, building materials stocks have been resilient with share prices up 5.4% on average since the latest earnings results.
Slowest Q2: Tecnoglass (NYSE:TGLS)
The first-ever Colombian company to trade on the NASDAQ, Tecnoglass (NYSE:TGLS) is a manufacturer of architectural glass, windows, and aluminum products.
Tecnoglass reported revenues of $219.7 million, down 2.5% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with full-year revenue guidance beating analysts’ expectations.
Interestingly, the stock is up 25.6% since reporting and currently trades at $59.71.
Is now the time to buy Tecnoglass? Access our full analysis of the earnings results here, it’s free.
Best Q2: UFP (NASDAQ:UFPI)
Beginning as a lumber supplier in the 1950s, UFP (NASDAQ:UFPI) makes a wide range of building materials for the construction, retail, and industrial sectors
UFP reported revenues of $1.90 billion, down 6.9% year on year, outperforming analysts’ expectations by 1.6%. It was a very strong quarter for the company with an impressive beat of analysts’ volume estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 6.2% since reporting. It currently trades at $119.14.
Is now the time to buy UFP? Access our full analysis of the earnings results here, it’s free.
Sherwin-Williams (NYSE:SHW)
Widely known for its success in the paint industry, Sherwin-Williams (NYSE:SHW) is a manufacturer of paints, coatings, and related products.
Sherwin-Williams reported revenues of $6.27 billion, flat year on year, in line with analysts’ expectations. It was a mixed quarter for the company with a miss of analysts’ organic revenue estimates.
Sherwin-Williams posted the weakest performance against analyst estimates in the group. Interestingly, the stock is up 11.6% since the results and currently trades at $360.
Read our full analysis of Sherwin-Williams’s results here.
Resideo (NYSE:REZI)
Resideo Technologies, Inc. (NYSE: REZI) is a manufacturer and distributor of technology-driven products and solutions for home comfort, energy management, water management, and safety and security.
Resideo reported revenues of $1.59 billion, flat year on year, surpassing analysts’ expectations by 3.6%. Revenue aside, it was a strong quarter for the company with revenue guidance for next quarter exceeding analysts’ expectations and optimistic EBITDA guidance for the full year.
Resideo pulled off the highest full-year guidance raise among its peers. The stock is flat since reporting and currently trades at $19.15.
Read our full, actionable report on Resideo here, it’s free.
AZEK (NYSE:AZEK)
With a significant portion of its products made from recycled materials, AZEK (NYSE:AZEK) designs and manufactures goods for outdoor living spaces.
AZEK reported revenues of $434.4 million, up 12.1% year on year, surpassing analysts’ expectations by 9.5%. More broadly, it was a strong quarter for the company with an impressive beat of analysts’ organic revenue estimates.
AZEK achieved the biggest analyst estimates beat but had the weakest full-year guidance update among its peers. The stock is up 14.3% since reporting and currently trades at $42.11.
Read our full, actionable report on AZEK here, it’s free.
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