Bullish Q4 Earnings, Modest Guidance: Can Building Materials Supplier Owens Corning Find the Right Roof?
Portfolio Pulse from Lekha Gupta
Owens Corning Inc (NYSE:OC) reported Q4 FY23 net sales growth of 1% Y/Y to $2.30 billion, beating consensus estimates. Adjusted EPS rose to $3.21 from $2.49 a year ago, surpassing expectations. The company saw an 18% Y/Y increase in adjusted EBIT to $392 million and a 13% rise in adjusted EBITDA to $518 million. Owens Corning expects Q1 FY24 net sales to be slightly below Y/Y with mid-teen EBIT margins and has forecasted FY24 corporate expenses and capital additions. Additionally, Owens Corning announced the acquisition of Masonite International Corp (NYSE:DOOR) for $3.9 billion. OC shares dropped 1.75% to $144.47.
February 14, 2024 | 5:23 pm
News sentiment analysis
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NEGATIVE IMPACT
Owens Corning reported strong Q4 FY23 results, beating sales and EPS estimates, and announced the acquisition of Masonite International. However, shares fell 1.75%.
Despite surpassing Q4 earnings expectations and announcing a significant acquisition, the slight negative outlook for Q1 FY24 sales and the current share price drop indicate a short-term negative impact.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Masonite International Corp is being acquired by Owens Corning for approximately $3.9 billion, at $133.00 per share in cash.
The acquisition announcement by Owens Corning represents a significant premium over Masonite's current trading price, indicating a positive short-term impact on Masonite's stock.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 90