Home Construction Materials Stocks Q2 In Review: Griffon (NYSE:GFF) Vs Peers

Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Griffon GFF and its peers.

Traditionally, home construction materials companies have built economic moats with expertise in specialized areas, brand recognition, and strong relationships with contractors. More recently, advances to address labor availability and job site productivity have spurred innovation that is driving incremental demand. However, these companies are at the whim of residential 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 home construction materials companies.

The 11 home construction materials stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was 1.7% above.

While some home construction materials stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.1% since the latest earnings results.

Griffon GFF

Initially in the defense industry, Griffon GFF is a now diversified company specializing in home improvement, professional equipment, and building products.

Griffon reported revenues of $481.4 million, up 7% year on year. This print exceeded analysts’ expectations by 5.2%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.

Interestingly, the stock is up 4.3% since reporting and currently trades at $97.63.

Best Q2: JELD-WEN JELD

Founded in the 1960s as a general wood-making company, JELD-WEN JELD manufactures doors, windows, and other related building products.

JELD-WEN reported revenues of $817.8 million, flat year on year, outperforming analysts’ expectations by 3.2%. The business had a stunning quarter with a solid beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.

JELD-WEN scored the highest full-year guidance raise in the group. The market seems happy with the results as the stock is up 47.9% since reporting. It currently trades at $2.13.

Weakest Q2: Builders FirstSource BLDR

Headquartered in Irving, TX, Builders FirstSource BLDR is a construction materials manufacturer that offers a variety of lumber and lumber-related building products.

Builders FirstSource reported revenues of $3.86 billion, down 8.8% year on year, falling short of analysts’ expectations by 1.5%. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ EPS estimates.

Builders FirstSource delivered the slowest revenue growth and weakest full-year guidance update of the whole group. As expected, the stock is down 8.2% since the results and currently trades at $62.18.

Read our full analysis of Builders FirstSource’s results here.

Quanex NX

Starting in the seamless tube industry, Quanex NX manufactures building products like window, door, kitchen, and bath cabinet components.

Quanex reported revenues of $501.8 million, up 1.3% year on year. This print surpassed analysts’ expectations by 0.9%. Overall, it was an exceptional quarter as it also logged a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.

The stock is up 16.5% since reporting and currently trades at $21.85.

Read our full, actionable report on Quanex here, it’s free.

Simpson SSD

Aiming to build safer and stronger buildings, Simpson SSD designs and manufactures structural connectors, anchors, and other construction products.

Simpson reported revenues of $671.1 million, up 6.3% year on year. This result topped analysts’ expectations by 1.9%. It was an exceptional quarter as it also produced a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.

The stock is down 8.6% since reporting and currently trades at $176.68.

Read our full, actionable report on Simpson here, it’s free.