Financial Data and Key Metrics - Q3 2024 revenue decreased by 5% to $648 million compared to the prior year quarter [9] - Adjusted EBITDA before unallocated amounts decreased by 8% to $141 million, with an EBITDA margin of 21.7% [9] - GAAP net income was $41 million or $0.84 per share, compared to $49 million or $0.90 per share in the prior year quarter [10] - Adjusted net income was $61 million or $1.24 per share, compared to $70 million or $1.29 per share in the prior year [10] - Free cash flow in the quarter was strong at $120 million, supporting the capital allocation strategy [5] Segment Performance Home and Building Products (HBP) - Revenue declined 2% due to unfavorable product mix, with increased residential volume offset by decreased commercial volume [11] - Adjusted EBITDA decreased 12% to $119 million, driven by reduced revenue and increased steel, labor, and distribution costs [11] - EBITDA margin for the quarter was 30.1% [11] Consumer and Professional Products (CPP) - Revenue decreased 10% to $254 million, primarily due to reduced consumer demand in North America, partially offset by increased volume in Australia [11] - Adjusted EBITDA increased 22% to $22 million, driven by improved North American production costs and decreased discretionary spending [11] - EBITDA margin improved 230 basis points to 8.8% [11] Market and Strategic Developments - The company completed the acquisition of Pope, an Australian provider of residential watering products, expected to contribute approximately $25 million in annual sales to AMES Australia [12] - The global sourcing expansion initiative remains on time and on budget, with the shift from manufactured inventory to sourced inventory expected to improve margins in fiscal 2025 [12][22] - The company reiterated its 2024 guidance, including revenue of $2.65 billion and segment adjusted EBITDA of $555 million [13] Management Commentary on Operating Environment and Future Outlook - The company highlighted strong operating performance from both segments despite a challenging macroeconomic backdrop [14] - HBP has sustained 30%+ EBITDA margins, with increased residential door volume offsetting softness in the commercial market [14] - CPP is realizing early benefits from the global sourcing expansion strategy, with improving margins despite weak consumer demand [14] - The company remains committed to using strong operating performance and free cash flow to drive a capital allocation strategy focused on long-term shareholder value [14] Capital Allocation and Shareholder Returns - The company paid down $80 million in debt, repurchased $19 million in stock, and paid a $7 million regular quarterly dividend [5] - Since April 2023, the company has repurchased 7.9 million shares at an average price of $45.38 per share, reducing outstanding shares by 13.7% [7] - The Board authorized a regular quarterly dividend of $0.15 per share, marking the 52nd consecutive quarterly dividend [6] Q&A Session Summary Question: Demand environment for Home and Building Products - Residential business remains strong, while commercial business is lumpy but showing signs of improvement [16][17] - The mix headwinds are due to a slight decline in commercial volume and an improvement in residential volume [18] Question: Capital allocation strategy - The company maintains flexibility for buybacks, debt reduction, and acquisitions, with no change in philosophy [19][20] Question: CPP global sourcing progress - The heavy lifting for the global sourcing strategy is complete, with the company on track to achieve a 15% long-term margin target [20][21] - The shift from manufactured inventory to sourced inventory will continue into fiscal 2025, with margins expected to improve [22] Question: Differentiation in the doors industry - The company has introduced innovative products and integrated CornellCookson with Clopay, strengthening its position in the commercial market [24] - Strong execution, industry-leading lead times, and a robust dealer network contribute to the company's competitive advantage [24] Question: Steel cost impact on HBP - Steel costs had a couple of hundred basis points impact in Q3, with tailwinds expected in Q4 and into the next fiscal year [26][27] Question: M&A strategy - The company is focused on value-enhancing acquisitions like Pope, which expand product and geographic reach [31] - The company views its own stock as the most attractive investment opportunity at current prices [31] Question: Inventory destocking in CPP - Inventory levels are high in the U.K., normal in Australia and Canada, and slightly elevated in the U.S., with destocking expected to continue in Q4 [33] Question: Mix headwinds within residential customers - No significant mix headwinds, with slight buy-down observed in the retail channel [34] Question: CPP sales performance - CPP revenue was slightly lighter than expected due to weak consumer demand and inventory destocking [34]

Griffon (GFF) came out with quarterly earnings of $1.24 per share, missing the Zacks Consensus Estimate of $1.46 per share. This compares to earnings of $1.29 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of -15.07%. A quarter ago, it was expected that this garage door and building products maker would post earnings of $0.94 per share when it actually produced earnings of $1.35, delivering a surprise of 43.62%. Over the last fo ...

As such, the Zacks rating upgrade for Griffon is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price. The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increa ...

So, the price trend in GFF may not reverse anytime soon. This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market. Click here to sign up for a free trial to the Research Wizard today. When it comes to short-term investing or trading, they say "the trend is your friend." And there's no denying that this is the most profitable strategy. But makin ...

Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today: You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Greenland Technologies (GTEC) : This company which is a developer and a manufacturer of drivetrain systems for material handling machineries and electric vehicles, has seen the Zacks Consensus Estimate for its current year earnings increasing 18.2% over the last 60 days. Hagerty (HGTY) : This company which offer automotive lifestyle brand and specialty ins ...

One company to watch right now is Griffon (GFF) . GFF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 10.63, while its industry has an average P/E of 14.75. Over the past 52 weeks, GFF's Forward P/E has been as high as 14.44 and as low as 8.92, with a median of 11.52. These are only a few of the key metrics included in Griffon's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its ear ...

Image Source: Zacks Investment Research A couple of other top-ranked companies from the same space are discussed below: Estimate for CSL's 2024 earnings has increased 2.2%. Griffon Corporation's (GFF) subsidiary, The AMES Companies, Inc., recently completed the acquisition of Pope from The Toro Company (TTC) . The financial terms of the transaction have been kept under wraps. Griffon's shares inched up 0.3% yesterday to eventually close the trading session at $64.07. Headquartered in Beverley, Adelaide, Pop ...

The most recent trading session ended with Griffon (GFF) standing at $66.83, reflecting a +0.66% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 0.23% for the day. At the same time, the Dow lost 0.17%, and the tech-heavy Nasdaq gained 0.34%. The garage door and building products maker's stock has dropped by 4.86% in the past month, falling short of the Conglomerates sector's gain of 4.6% and the S&P 500's gain of 3.96%. Investors might also notice r ...

The price trend for Griffon (GFF) has been bearish lately and the stock has lost 6.2% over the past four weeks. However, the formation of a hammer chart pattern in its last trading session indicates that the stock could witness a trend reversal soon, as bulls might have gained significant control over the price to help it find support. The formation of a hammer pattern is considered a technical indication of nearing a bottom with likely subsiding of selling pressure. But this is not the only factor that mak ...

For a complete timeline of historical events for The AMES Companies, click here. Over the past 250 years, AMES has been embedded in American history, bringing expertise and adding value to many landmark projects and efforts, for example: Griffon conducts its operations through two reportable segments: For more information on Griffon and its operating subsidiaries, please see the Company's website at www.griffon.com. SOURCE The AMES Companies 1775-1783, During the Revolutionary War, patriots dig in with AMES ...