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CSL) Vs The Rest Of The Pack

CSL) Vs The Rest Of The Pack
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A Look Back at Building Materials Stocks’ Q3 Earnings: Carlisle (NYSE:CSL) Vs The Rest Of The Pack

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the building materials industry, including Carlisle (NYSE:CSL) 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 9 building materials stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 1% while next quarter’s revenue guidance was 2.8% above.

Thankfully, share prices of the companies have been resilient as they are up 5.2% on average since the latest earnings results.

Originally founded as Carlisle Tire and Rubber Company, Carlisle Companies (NYSE:CSL) is a multi-industry product manufacturer focusing on construction materials and weatherproofing technologies.

Carlisle reported revenues of $1.33 billion, up 5.9% year on year. This print fell short of analysts’ expectations by 3.3%. Overall, it was a softer quarter for the company with a significant miss of analysts’ organic revenue and EBITDA estimates.

Carlisle Total Revenue
Carlisle Total Revenue

Unsurprisingly, the stock is down 10.9% since reporting and currently trades at $408.85.

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

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 $348.2 million, down 10.4% year on year, outperforming analysts’ expectations by 2.4%. The business had a strong quarter with a solid beat of analysts’ adjusted operating income and organic revenue estimates.

AZEK Total Revenue
AZEK Total Revenue

AZEK delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 13.7% since reporting. It currently trades at $52.84.

Is now the time to buy AZEK? Access our full analysis of the earnings results here, it’s free.

Beginning as a lumber supplier in the 1950s, UFP Industries (NASDAQ:UFPI) is a holding company making building materials for the construction, retail, and industrial sectors.

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