What To Expect From Tecnoglass’s (TGLS) Q3 Earnings

Glass and windows manufacturer Tecnoglass (NYSE:TGLS) will be announcing earnings results tomorrow before market hours. Here’s what investors should know.

Tecnoglass met analysts’ revenue expectations last quarter, reporting revenues of $219.7 million, down 2.5% year on year. It was a slower quarter for the company, with a miss of analysts’ operating margin estimates.

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

This quarter, analysts are expecting Tecnoglass’s revenue to grow 14% year on year to $240.2 million, improving from the 4.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1 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. Tecnoglass has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 4.5% on average.

Looking at Tecnoglass’s peers in the building materials segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Armstrong World delivered year-on-year revenue growth of 11.3%, meeting analysts’ expectations, and Valmont reported a revenue decline of 2.9%, in line with consensus estimates. Armstrong World traded up 2.3% following the results while Valmont was also up 10.5%.

Read our full analysis of Armstrong World’s results here and Valmont’s results here.

There has been positive sentiment among investors in the building materials segment, with share prices up 2.7% on average over the last month. Tecnoglass is down 2.4% during the same time and is heading into earnings with an average analyst price target of $75 (compared to the current share price of $70.26).

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