Owens Corning misses Q3 profit estimates on weak residential markets, low storm activity

Overview

• U.S. building products maker's Q3 sales fell 7% yr/yr, missing analyst expectations

• Adjusted EPS for Q3 was $2.44, missing analyst expectations

• Company cites weak residential markets, low storm activity, and cost inflation for declines

Outlook

• Owens Corning expects Q4 revenue of $2.0 bln to $2.2 bln

• Company expects Q4 adjusted EBITDA margin of about 10% to 12%

• Company anticipates significant input and delivery cost inflation in Q4

Result Drivers

• WEAK RESIDENTIAL MARKETS - Co said challenging residential market conditions and low storm activity hurt results

• ROOFING DEMAND - Co said lack of storm activity and distribution destocking weighed on roofing segment demand

• COST INFLATION - Co said rising transportation and input material costs increased expenses

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy"

• Wall Street's median 12-month price target for Owens Corning is $145.00, about 23.1% above its November 3 closing price of $117.76

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• Nov 3 - Door and window maker JELD-WEN's Q3 revenue falls slightly more than expected on lower volumes

• Nov 3 - Louisiana-Pacific Q3 adjusted EBITDA beats estimates on pricing

• Nov 2 - Boise Cascade Q3 sales rise, beat estimates

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)