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
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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
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