Owens Corning (NYSE:OC) Q2 2024 Earnings Conference Call August 6, 2024 9:00 AM ET Company Participants Amber Wohlfarth - Vice President, Investor Relations, Corporate Affairs Brian Chambers - Chair and CEO Todd Fister - Chief Financial Officer Conference Call Participants Michael Rehaut - JPMorgan John Lovallo - UBS Stephen Kim - Evercore ISI Kathryn Thompson - Thompson Research Group Elizabeth Ann Langan - Barclays Sam Reid - Wells Fargo Chris Kalata - RBC Susan Maklari - Goldman Sachs Garik Shmois - Loop ...

Owens Corning (OC) reported $2.79 billion in revenue for the quarter ended June 2024, representing a yearover-year increase of 8.8%. EPS of $4.64 for the same period compares to $4.22 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $2.87 billion, representing a surprise of -2.95%. The company delivered an EPS surprise of +6.18%, with the consensus EPS estimate being $4.37. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how ...

Owens Corning (OC) came out with quarterly earnings of $4.64 per share, beating the Zacks Consensus Estimate of $4.37 per share. This compares to earnings of $4.22 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 6.18%. A quarter ago, it was expected that this construction materials company would post earnings of $3.04 per share when it actually produced earnings of $3.59, delivering a surprise of 18.09%. Over the last four qu ...

Analysts on Wall Street project that Owens Corning (OC) will announce quarterly earnings of $4.37 per share in its forthcoming report, representing an increase of 3.6% year over year. Revenues are projected to reach $2.87 billion, increasing 12.1% from the same quarter last year. Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.5% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this pe ...

The construction materials company's shares have seen an increase of 3.67% over the last month, not keeping up with the Construction sector's gain of 10.96% and outstripping the S&P 500's loss of 0.21%. In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.63 per share and a revenue of $11.21 billion, indicating changes of +8.39% and +15.84%, respectively, from the former year. Our research suggests that these changes in estimates have a direct relationship with upcoming ...

Owens Corning's (OC) focus on improving manufacturing efficiencies, ongoing product innovation, effective pricing strategies as well as reducing costs has been driving growth. Also, its focus on higher-value applications centering around building, construction, renewable energy and infrastructure markets bodes well. Moreover, targeted acquisitions are reinforcing its market position and contributing to its overall success. Image Source: Zacks Investment Research The growth prospect of this current Zacks Ran ...

Prior to today's trading, shares of the construction materials company had lost 2.24% over the past month. This has was narrower than the Construction sector's loss of 4.68% and lagged the S&P 500's gain of 3.22% in that time. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $15.48 per share and a revenue of $11.23 billion, representing changes of +7.35% and +16.03%, respectively, from the prior year. Our research demonstrates that these adjustments in estimates directly ...

Core Insights - The article emphasizes the importance of utilizing Zacks Premium and its various tools, such as the Zacks Style Scores and Zacks Rank, to enhance stock market investment strategies and achieve better returns. Group 1: Zacks Style Scores - Zacks Style Scores provide a unique rating system for stocks based on value, growth, and momentum characteristics, helping investors identify securities with high potential for market outperformance [2][15]. - The Value Style Score focuses on identifying attractive and discounted stocks using ratios like P/E, PEG, and Price/Sales [3]. - The Momentum Style Score assists investors in capitalizing on upward or downward trends in stock prices, utilizing factors like one-week price change and monthly earnings estimate changes [4]. Group 2: Zacks Rank and Performance - The Zacks Rank is a proprietary stock-rating model that leverages earnings estimate revisions to guide investors in building successful portfolios [5]. - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [17]. - A stock's earnings estimate revisions are crucial in determining its potential for investment, as they work in conjunction with the Zacks Rank [18]. Group 3: Company Spotlight - Owens Corning (OC) - Owens Corning (OC) is highlighted as a stock to watch, currently holding a 1 (Strong Buy) rating on the Zacks Rank and a VGM Score of B [12][20]. - Analysts have revised OC's earnings estimate higher for fiscal 2024, with the Zacks Consensus Estimate increasing by $1.79 to $15.48 per share, and the company has an average earnings surprise of 17.4% [8]. - OC is recognized as a leader in building materials and composite solutions, with a strong focus on glass fiber technology for various high-performance markets [19].

Company Analysis - Owens Corning is outperforming its end markets, leading to analysts raising their price targets for the stock, with Barclays increasing it to $190 from $160 and RBC Capital raising it to $201 [4][6] - The company's roofing segment saw a 7% increase in sales in the first quarter, contrasting with a 2% decline in the insulation segment and an 11% decline in its composites business [15] - Owens Corning's acquisition of Masonite adds complementary building products to its portfolio, enhancing its market position [10] Industry Insights - The overall housing market remains sluggish, particularly in the repair and remodeling sector, but there are strengths in the single-family new residential construction market due to affordability issues and low inventory of existing homes [9][11] - Analysts are increasingly optimistic about the roofing, insulation, and composites sectors, particularly for Owens Corning, while sentiment is declining for Stanley Black & Decker [12][16] - The housing market conditions are affecting Owens Corning and Stanley Black & Decker in opposite ways, with Owens Corning benefiting from repair and remodeling activities, while Stanley Black & Decker faces challenges [16][20] Challenges and Strategies - Stanley Black & Decker is under pressure due to weak demand, leading to a disappointing inventory-to-sales ratio, despite efforts to reduce inventory [3][8] - The company has outlined a need to invest between $300 million to $500 million to regain market share, indicating deeper issues beyond just weak demand [8][18] - Stanley Black & Decker's restructuring plan aims to cut costs by $2 billion by 2025, which includes reducing product ranges and consolidating facilities [13]

Earnings and Revenue Projections - Analysts expect earnings of $15 48 per share and revenue of $11 23 billion for the full year, representing year-over-year increases of +7 35% and +16 03% respectively [1] - For the upcoming quarter, earnings per share (EPS) are projected at $4 31, a 2 13% increase from the same quarter last year, with quarterly revenue expected to be $2 87 billion, up 12 13% year-over-year [6] Valuation Metrics - The company currently has a Forward P/E ratio of 11 6, which is a discount compared to the industry average Forward P/E of 19 13 [4] - The PEG ratio stands at 5 34, significantly higher than the industry average PEG ratio of 1 74 [8] Stock Performance - The stock ended the recent trading session at $176 56, showing a -1 65% change from the previous day's close [10] - Over the past month, the stock gained 2 8%, outperforming the Construction sector's loss of 0 27% but lagging behind the S&P 500's gain of 4 59% [10] Industry and Sector Context - The Building Products - Miscellaneous industry, part of the Construction sector, holds a Zacks Industry Rank of 35, placing it in the top 14% of all 250+ industries [5] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [5] Analyst Sentiment and Revisions - Recent upward revisions in analyst estimates reflect a favorable outlook on the company's business health and profitability [2] - The Zacks Consensus EPS estimate has risen by 0 72% over the past month, and the company currently holds a Zacks Rank of 1 (Strong Buy) [3] Market Correlation - Research shows that changes in analyst estimates are directly correlated with near-term stock prices, forming the basis of the Zacks Rank system [7]