VMC) In The Context Of Other Building Materials Stocks
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Vulcan Materials (NYSE:VMC) and the best and worst performers in the building materials industry.
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 1.1% below.
In light of this news, share prices of the companies have held steady as they are up 2.6% on average since the latest earnings results.
Founded in 1909, Vulcan Materials (NYSE:VMC) is a producer of construction aggregates, primarily crushed stone, sand, and gravel.
Vulcan Materials reported revenues of $2.29 billion, up 14.4% year on year. This print exceeded analysts’ expectations by 0.8%. Overall, it was a satisfactory quarter for the company with a decent beat of analysts’ adjusted operating income estimates but full-year EBITDA guidance slightly missing analysts’ expectations.
Vulcan Materials scored the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 1.8% since reporting and currently trades at $300.20.
Is now the time to buy Vulcan Materials? Access our full analysis of the earnings results here, it’s free.
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 $1.35 billion, flat year on year, outperforming analysts’ expectations by 1.2%. The business had a very strong quarter with an impressive beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ organic revenue estimates.
The market seems happy with the results as the stock is up 8.3% since reporting. It currently trades at $358.59.
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