BUFFALO, N.Y. - Gibraltar Industries , Inc. (NASDAQ:ROCK), a company specializing in products and services for various markets including residential and renewable energy, has revised its financial guidance for 2024. The updates to net sales and earnings per share (EPS) reflect the ongoing challenges faced by the renewable energy sector and a continued slowdown in the residential market.
The company's preliminary results for the three months ending September 30, 2024, indicate net sales ranging between $359 million and $362 million, down from $390.7 million in the same period in 2023. The updated full-year guidance anticipates net sales between $1,310 million and $1,330 million, a decrease from the previously projected range of $1,380 million to $1,420 million.
Gibraltar's GAAP EPS for the quarter is estimated to be between $1.09 and $1.12, compared to $1.28 in 2023. The adjusted EPS, which excludes certain charges, is expected to be between $1.25 and $1.28, down from the $1.37 reported in the prior year. For the full year, the company now expects GAAP EPS to range from $3.57 to $3.71 and adjusted EPS from $4.11 to $4.25, both below the prior guidance and 2023 results.
Chairman and CEO Bill Bosway cited trade and regulatory uncertainties, including anti-dumping/countervailing (AD/CVD) investigations and the expiration of a tariff moratorium, as contributing factors to the industry headwinds. The residential market, including the repair and remodel sector, is also experiencing slower growth, impacting the company's sales.
Gibraltar will hold its third-quarter results conference call on October 30, 2024, at 9:00 a.m. ET, with a webcast available for those unable to join live. The company advises caution regarding the preliminary financial results, as they are subject to change pending completion of standard review procedures.
The revised guidance and preliminary results are based on currently available information and reflect Gibraltar's expectations as of today. The company emphasizes that actual results may differ materially from these preliminary estimates. This news article is based on a press release statement from Gibraltar Industries, Inc.
In other recent news, Gibraltar Industries has undergone significant developments. The company has appointed Joseph A. Lovechio as its new Chief Financial Officer, succeeding Timothy F. Murphy. With a robust background in finance and strategic leadership roles at Whirlpool Corporation (NYSE:WHR), Mr. Lovechio's expertise will be instrumental in Gibraltar's ongoing transformation.
Gibraltar Industries reported mixed results for its second quarter of 2024, with a slight 2% dip in adjusted net sales, but a modest increase in adjusted net income and earnings per share. This was largely due to a significant increase in bookings from the Agtech segment, leading to a 32% rise in backlog. However, project delays and the completion of a large infrastructure project resulted in a 4% drop in the company's overall backlog.
Looking ahead, Gibraltar Industries has adjusted its full-year guidance, expecting growth across all segments. The company anticipates net sales to be between $1.38 billion and $1.42 billion, marking growth of 2% to 4%. Despite market challenges, Gibraltar Industries remains confident in its growth trajectory, backed by ongoing discussions for mergers and acquisitions in the residential sector and initiatives such as digital transformation. These are recent developments that provide insights into the company's performance and outlook.
InvestingPro Insights
Gibraltar Industries' recent guidance revision reflects the challenges faced by the company, but InvestingPro data provides additional context to the financial picture. Despite the lowered expectations, Gibraltar maintains a solid financial foundation. The company's market capitalization stands at $2.14 billion, with a P/E ratio of 18.51, suggesting that investors are still placing a moderate premium on the stock relative to its earnings.
InvestingPro Tips highlight Gibraltar's financial strength. The company "holds more cash than debt on its balance sheet," which is particularly important during periods of market uncertainty. This liquidity position is further reinforced by the fact that "liquid assets exceed short term obligations," providing Gibraltar with financial flexibility to navigate the current industry headwinds.
Moreover, Gibraltar's profitability remains intact, with InvestingPro data showing a gross profit of $381.69 million and an operating income margin of 12.58% for the last twelve months as of Q2 2024. This aligns with the InvestingPro Tip that the company has been "profitable over the last twelve months."
While the revised guidance suggests near-term challenges, long-term investors might find comfort in the InvestingPro Tip indicating a "high return over the last decade." This historical performance, coupled with the company's current financial stability, could position Gibraltar well for recovery once market conditions improve.
For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips that could provide deeper insights into Gibraltar's financial health and market position.
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