Insteel Leads Q1 Earnings for Commercial Building Products Stocks: Industry Analysis and Key Performers

As the Q1 earnings season winds down, let’s take a closer look at the best and worst performers in the commercial building products industry, including Insteel (NYSE:IIIN) and its peers.

Industry Overview

Commercial building products companies, which often serve more complex projects, can supplement their core business with higher-margin installation and consulting services revenues. Recently, advances in addressing labor availability and job site productivity have spurred innovation. Additionally, companies that can produce more energy-efficient materials have opportunities to take share. However, these companies are at the mercy of commercial construction volumes, which tend to be cyclical and can be heavily impacted by economic factors such as interest rates. Moreover, the costs of raw materials can be driven by various worldwide factors and greatly influence the profitability of commercial building products companies.

Q1 Earnings Highlights

The 5 commercial building products stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was 1.6% above.

Best Q1 Performers

Insteel (NYSE:IIIN)

Growing from a small wire manufacturer to one of the largest in the U.S., Insteel (NYSE:IIIN) provides steel wire reinforcing products for concrete. Insteel reported revenues of $160.7 million, up 26.1% year on year. This print exceeded analysts’ expectations by 7.2%. Overall, it was an incredible quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates. Insteel pulled off the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 30.7% since reporting and currently trades at $34.86.

Janus (NYSE:JBI)

Standing out with its digital keyless entry into self-storage room technology, Janus (NYSE:JBI) is a provider of easily accessible self-storage solutions. Janus reported revenues of $210.5 million, down 17.3% year on year, outperforming analysts’ expectations by 2%. The business had a very strong quarter with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EPS estimates. The market seems happy with the results as the stock is up 10.4% since reporting. It currently trades at $7.89.

Slowest Q1 Performers

AZZ (NYSE:AZZ)

Responsible for projects like nuclear facilities, AZZ (NYSE:AZZ) is a provider of metal coating and power infrastructure solutions. AZZ reported revenues of $351.9 million, down 4% year on year, falling short of analysts’ expectations by 4.3%. It was a slower quarter as it posted a miss of analysts’ EBITDA estimates and full-year revenue guidance meeting analysts’ expectations. AZZ delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 15% since the results and currently trades at $89.40.

Apogee (NASDAQ:APOG)

Involved in the design of the Apple Store on Fifth Avenue in New York City, Apogee (NASDAQ:APOG) sells architectural products and services such as high-performance glass for commercial buildings. Apogee reported revenues of $345.7 million, down 4.5% year on year. This print topped analysts’ expectations by 4.2%. Overall, it was a strong quarter as it also recorded an impressive beat of analysts’ EBITDA estimates and full-year revenue guidance beating analysts’ expectations. Apogee delivered the highest full-year guidance raise among its peers. The stock is down 18.1% since reporting and currently trades at $37.58.

Johnson Controls (NYSE:JCI)

Founded after patenting the electric room thermostat, Johnson Controls (NYSE:JCI) specializes in building products and technology solutions, including HVAC systems, fire and security systems, and energy storage