Q1 Earnings Analysis: JELD-WEN vs. Home Construction Materials Peers Show Mixed Results and Declining Stock Prices

Earnings results for the first quarter (Q1) of 2023 have provided valuable insights into the performance of home construction materials companies. As a group, these companies reported revenues that were in line with analysts’ consensus estimates, but their share prices have collectively declined by an average of 4.2% since the latest earnings results.

JELD-WEN (NYSE:JELD)

JELD-WEN, a manufacturer of doors, windows, and other related building products, reported revenues of $776 million, a 19.1% decrease from the previous year. Despite the decline, the company beat analysts’ expectations by 0.8%. JELD-WEN delivered the slowest revenue growth of the group and its stock is down 35.6% since reporting, currently trading at $3.61.

Simpson (NYSE:SSD)

Simpson, which designs and manufactures structural connectors, anchors, and other construction products, reported revenues of $538.9 million, a 1.6% increase from the previous year and outperforming analysts’ expectations by 2%. The company had an exceptional quarter with impressive beats of analysts’ EBITDA and EPS estimates. However, the results were likely priced into the stock as it has traded sideways since reporting. Shares currently sit at $153.77.

Masco (NYSE:MAS)

Masco, which designs and manufactures home-building products such as glass shower doors, decorative lighting, bathtubs, and faucets, reported revenues of $1.80 billion, a 6.5% decrease from the previous year and falling short of analysts’ expectations by 2%. It was a disappointing quarter as the company posted a significant miss of analysts’ adjusted operating income estimates. The stock is flat since the results and currently trades at $61.19.

American Woodmark (NASDAQ:AMWD)

American Woodmark, a cabinet manufacturing company, reported revenues of $400.4 million, a 11.7% decrease from the previous year. This number missed analysts’ expectations by 6.6%. Overall, it was a softer quarter as the company also logged full-year EBITDA guidance that missed analysts’ expectations. American Woodmark had the weakest performance against analyst estimates among its peers and its stock is down 10.1% since reporting, currently trading at $50.84.

Owens Corning (NYSE:OC)

Owens Corning, credited with the discovery of fiberglass, supplies building and construction materials to the United States and international markets. The company’s performance was not discussed in the provided information but it is worth noting that Owens Corning is another major player in the home construction materials industry.

In conclusion, the home construction materials industry has faced challenges in Q1 2023 with declining revenues and share prices. While some companies performed better than others, the overall trend was negative. Investors should closely monitor economic factors such as interest rates and raw material costs to make informed decisions about investing in this sector.