Financial Outlook for Fiscal Year 2024 - The company raises FY24 outlook, driven by strong demand YTD[8] - Net sales are projected to be in the range of $1,407 million to $1,438 million[7], compared to the previous range of $1,385 million to $1,425 million[7] - Residential segment net sales are expected to be between $1,337 million and $1,364 million[7], versus the prior estimate of $1,312 million to $1,348 million[7] - Adjusted EBITDA is anticipated to be in the range of $364 million to $380 million[7], up from the previous range of $353 million to $372 million[7] - The company expects an Adjusted EBITDA Margin of 25.8% to 26.4%[8] Q3 2024 Guidance - Net sales are projected to be in the range of $385 million to $400 million[9] - Residential segment net sales are expected to be between $368 million and $382 million[9] - Adjusted EBITDA is anticipated to be in the range of $103 million to $110 million[9] - The company expects an Adjusted EBITDA Margin of 26.6% to 27.4% in fiscal 3Q24[9] Strategic Initiatives and Market Position - The company expects to drive above-market Residential segment growth in the range of 9% to 12% y-o-y via initiatives[8] - The divestiture of the Commercial segment's Vycom business closed on November 1, 2023[14]

Financial Performance - Consolidated Net Sales for Q2 2024 expected to be $418.4 million, an 11% year-over-year growth, with Residential Segment Net Sales at $402.5 million, representing an 18% increase [2]. - For the first half of fiscal 2024, consolidated net sales are projected at $658.9 million, also an 11% year-over-year growth, with net income estimated between $74 to $75 million and an adjusted EBITDA range of $167 to $169 million [2]. - The fiscal 2024 net sales outlook has been raised to a range of $1.407 to $1.438 billion, with adjusted EBITDA expected between $364 to $380 million [3]. - The Residential segment is expected to achieve 9% to 12% year-over-year growth in net sales for fiscal 2024 [12]. - Adjusted Net Income for the six months ended March 31, 2024, is estimated to be between $74,000 and $75,400 thousand [29]. - Adjusted EBITDA for the same period is projected to be between $166,690 and $168,690 thousand, with an Adjusted EBITDA Margin of approximately 25.3% to 25.6% [29][30]. - Net sales for the three months ended March 31, 2024, reached $418,408 thousand, an increase from $377,692 thousand in the same period of 2023 [32]. - Adjusted Net Sales excluding the impact from the divested Vycom business for the six months ended March 31, 2024, is $655,534 thousand compared to $552,970 thousand in the same period of 2023 [32]. - The estimated Net Profit Margin for the six months ended March 31, 2024, is between 11.2% and 11.4% [30]. Shareholder Returns - The company returned $25 million to shareholders through share repurchases in the fiscal second quarter [5]. Capital Expenditures and Investments - The company anticipates capital expenditures for fiscal year 2024 to be in the range of $85 to $95 million [12]. - Free Cash Flow is defined as net cash provided by operating activities less capital expenditures, although specific figures were not disclosed in the provided content [25]. Adjusted EBITDA and Margins - The adjusted EBITDA margin for fiscal 2024 is expected to be between 25.8% to 26.4%, an increase from previous estimates [12]. - The company has not reconciled Adjusted EBITDA or Adjusted EBITDA Margin guidance to GAAP measures due to uncertainties regarding reconciling items [33]. - Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin are used for resource allocation and performance assessment, but may differ from overall Adjusted EBITDA calculations [27]. Product Innovations - New product innovations, including the TimberTech Advanced PVC Vintage Collection, have set new industry standards and received multiple awards for sustainability [5]. Inventory and Financial Restatement - The company identified an inventory discrepancy that will lead to a restatement of financial results for prior fiscal years, but this will not impact net sales or business operations [14][16]. Future Growth Expectations - AZEK expects to continue driving above-market growth in the second half of fiscal 2024 and into fiscal 2025, supported by ongoing growth initiatives and market expansion [11].

Core Viewpoint - The AZEK Company Inc. is expected to report strong second-quarter fiscal 2024 results, with significant year-over-year growth in earnings and net sales driven by its Residential segment despite challenges in the Commercial segment [1][2][3]. Revenue Performance - The Zacks Consensus Estimate for adjusted earnings per share has increased to 38 cents, reflecting a 111.1% rise from 18 cents in the same quarter last year [2]. - Net sales are projected at $414.7 million, indicating a 9.8% increase from $377.7 million reported in the prior year [2]. - The Residential segment is expected to generate net sales of $396 million, a 15.8% year-over-year growth, while the Commercial segment's sales are anticipated to decline to $16.8 million from $35.6 million a year ago [4]. Factors Influencing Growth - The growth in revenues is attributed to strong performance in the Residential segment, driven by material conversion, recent shelf space gains, and new product innovations [3]. - Demand in product categories such as Deck, Rail & Accessories, and Exteriors is expected to support revenue growth, although the divestiture of the Vycom business has negatively impacted the Commercial segment [3][4]. Margin Expectations - The company anticipates adjusted EBITDA between $108 million and $112 million, with an adjusted EBITDA margin of 26.5% to 27.1%, compared to $72.8 million and 19.3% in the same quarter last year [5]. Earnings Prediction Insights - The current model indicates that AZEK may not achieve an earnings beat this quarter, as it lacks a positive Earnings ESP and a strong Zacks Rank [6].

Wall Street analysts expect The AZEK Company (AZEK) to post quarterly earnings of $0.38 per share in its upcoming report, which indicates a year-over-year increase of 111.1%. Revenues are expected to be $414.7 million, up 9.8% from the year-ago quarter.The consensus EPS estimate for the quarter has undergone an upward revision of 1.2% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Pri ...

In the latest market close, The AZEK Company (AZEK) reached $45, with a +0.63% movement compared to the previous day. This move lagged the S&P 500's daily gain of 0.87%. Meanwhile, the Dow gained 0.67%, and the Nasdaq, a tech-heavy index, added 1.11%.The the stock of company has fallen by 9.62% in the past month, lagging the Construction sector's loss of 5.9% and the S&P 500's loss of 3.97%.The investment community will be closely monitoring the performance of The AZEK Company in its forthcoming earnings re ...

Core Viewpoint - The AZEK Company (AZEK) has experienced a significant downtrend with a 9.6% decline over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to improved earnings expectations from analysts [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) for AZEK is currently at 28.24, indicating that the heavy selling pressure may be exhausting, which could lead to a price rebound [4]. - A stock is generally considered oversold when its RSI falls below 30, and this technical indicator helps identify potential entry points for investors [2]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts that AZEK will report better earnings than previously predicted, with a 1.4% increase in the consensus EPS estimate over the last 30 days [4]. - AZEK holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a near-term turnaround [5].

The AZEK Company (AZEK) closed at $46.20 in the latest trading session, marking a -0.13% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.03%. Elsewhere, the Dow saw an upswing of 0.41%, while the tech-heavy Nasdaq appreciated by 0.12%.The the stock of company has fallen by 2.92% in the past month, lagging the Construction sector's loss of 1.74% and the S&P 500's loss of 0.9%.The investment community will be paying close attention to the earnings performance of The AZE ...

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today April 16th:Sterling Infrastructure, Inc. (STRL) : This company which specializes in E-Infrastructure, Building and Transportation Solutions principally in the United States, primarily across the Southern, Northeastern, Mid-Atlantic and the Rocky Mountain States, California and Hawaii, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasi ...

The Zacks Building Products - Air Conditioner & Heating industry stands at a strategic vantage point to leverage the prevailing mega-trends and opportunities tied to the energy transition and the burgeoning pro-environmental movement. As we progress into 2024 and beyond, companies within this industry are witnessing a surge in demand for renewable energy solutions, presenting lucrative avenues for expansion. Despite grappling with inflationary pressures, key players such as Comfort Systems USA, Inc. (FIX) a ...

The AZEK Company (AZEK) closed the latest trading day at $50.17, indicating a +0.82% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily loss of 0.04%. Elsewhere, the Dow saw a downswing of 0.03%, while the tech-heavy Nasdaq appreciated by 0.03%.Coming into today, shares of the company had gained 1.76% in the past month. In that same time, the Construction sector gained 4.37%, while the S&P 500 gained 2.57%.The upcoming earnings release of The AZEK Company wi ...