Core Viewpoint - Owens Corning reported mixed results for Q2 2024, with earnings exceeding estimates while net sales fell short, driven by strong commercial execution and the acquisition of Masonite [2][3]. Financial Performance - Adjusted EPS was $4.64, surpassing the consensus estimate of $4.37 by 6.2% and increasing 9% from $4.25 a year ago [3]. - Net sales reached $2.79 billion, missing the consensus mark of $2.87 billion by 3% but reflecting a 9% year-over-year increase from $2.56 billion [3]. Segment Performance - Composites segment net sales decreased 12% year-over-year to $546 million due to lower volumes and price declines [4]. - Insulation segment net sales were $916 million, up 1% year-over-year, with strong North American demand but weaker European performance [6]. - Roofing segment net sales decreased 2% year-over-year to $1.11 billion, affected by lower volumes but offset by positive price realization [8]. - Doors segment reported net sales of $311 million, meeting expectations despite market pressures [9]. Margin Analysis - EBIT margin contracted to 11% from 14% year-over-year, while EBITDA margins decreased to 19% from 21% [5]. - Insulation segment EBIT margin rose 200 bps to 20%, with EBITDA margin increasing to 26% from 24% [7]. - Roofing segment EBIT and EBITDA margins expanded to 34% and 35%, respectively, due to strong commercial execution [9]. Cash Flow and Balance Sheet - Net cash provided by operating activities was $517 million, up from $330 million in the previous year [11]. - As of June 30, 2024, cash and cash equivalents totaled $254 million, down from $1.62 billion at the end of 2023, while long-term debt rose to $5.02 billion from $2.62 billion [10]. Q3 and 2024 Outlook - For Q3, the company expects net sales growth in the low-20% range and EBIT margin in the high teens [14]. - The 2024 outlook includes increased corporate expenses and interest expenses, with capital additions estimated at approximately $650 million [15]. Market Trends - The company anticipates ongoing demand for single-family new construction and solid non-discretionary repair and remodeling activity, despite soft discretionary activity [12][13].

In the latest trading session, Owens Corning (OC) closed at $159.98, marking a +0.23% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.16%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq lost 0.3%. Shares of the construction materials company have appreciated by 1.29% over the course of the past month, underperforming the Construction sector's gain of 1.53% and the S&P 500's gain of 3.64%. Analysts and investors alike will be keeping a close ey ...

Core Viewpoint - Owens Corning (OC) has experienced a 7.1% decline in stock value over the past three months, contrasting with a 9.5% growth in the Zacks Building Products - Miscellaneous industry, despite healthy demand in the North American building and construction market [1][2] Group 1: Volume and Revenue Expectations - For Q3, Owens Corning anticipates flat to slightly declining Roofing revenues year-over-year, with U.S. shingle end-market demand expected to decrease by mid-to-high single digits [4] - The company projects a decline in discretionary repair and remodeling activity, particularly affecting demand for Doors products, with expected top-line performance down by high-single digits [5] - In the Composites segment, overall revenues are expected to decrease by low to mid-single digits, with pricing anticipated to decline year-over-year [6] Group 2: Cost Pressures - Owens Corning is facing significant inflationary pressures, with total restructuring, acquisition, and divestiture-related costs amounting to $129 million in the first half of 2024, compared to gains of $124 million in the same period last year [7] - Input materials are expected to experience inflationary pressures across all business segments, impacting manufacturing investments in U.S. fiberglass insulation [8] Group 3: Currency and Economic Challenges - The company is exposed to risks from unfavorable foreign currency movements due to its operations in Europe and Asia-Pacific, alongside dependence on housing market demand [9]

Core Points - Cincinnati Affordable Contracting has been recognized as an Owens Corning Preferred Contractor, highlighting its commitment to high-quality work and customer satisfaction [1][2][8] - The recognition allows the company to offer better warranties and exclusive access to premium Owens Corning materials, enhancing service delivery [5][10] - The company has built a strong reputation in the Greater Cincinnati area, supported by a comprehensive portfolio of successful projects [6][10] Company Services - Cincinnati Affordable Contracting provides a wide range of services including roofing, gutter installation, siding repair, painting, junk removal, fence installation, deck staining, and drywall work [3][7] - The roofing services include thorough inspections, repairs, and replacements, focusing on extending the longevity of roofs [3][4] - The company emphasizes the use of top-quality materials and advanced techniques for leak detection and repair [4][8] Commitment to Quality - The recognition as an Owens Corning Preferred Contractor reaffirms the company's dedication to maintaining high standards in the construction industry [4][8] - The company aims to exceed industry benchmarks and ensure client satisfaction through professional services [4][8] - Cincinnati Affordable Contracting's focus on quality workmanship and customer service is integral to its operations [2][10]

Wall Street analysts understand that their reputations and careers are on the line each time they issue a recommendation for—or against—a stock. Knowing this, investors would find the weight of the decisionmaking and stock rating all the more important now that the S&P 500 has survived one of the worst weeks of 2024. During volatile times, each analyst boost carries double weight. After the so-called "Carry Trade" between U.S. dollars and the Japanese yen started to unwind due to interest rate hikes in Japa ...

Company Performance - Owens Corning reported revenue of $2.79 billion, missing analysts' expectations of $2.92 billion but showing an increase from $2.56 billion in the same quarter of 2023 [2] - The company realized revenue of $311 million from its acquisition of Masonite, which significantly impacted overall revenue performance [3] - Owens Corning generated $336 million of free cash flow in the quarter and returned $52 million to shareholders via dividends [8] Market Context - The stock of Owens Corning is down over 10% for the week following the earnings report, attributed to a broader market sell-off [1] - The company is heavily reliant on a healthy market for new home construction and remodeling activities, which are currently under pressure [5] - Investors are cautious as discretionary repair and remodeling activities are expected to remain soft in the near term, while demand for non-discretionary items is anticipated to be healthy [6] Analyst Sentiment - Analysts maintain a Moderate Buy rating on Owens Corning stock, with a consensus price target of $184.23, indicating an 18.19% upside potential [11] - The Royal Bank of Canada raised its price target for Owens Corning from $211 to $213, reflecting continued bullish sentiment [11] - Historical trends suggest that the current dip in stock price may present a buying opportunity, as the stock has previously recovered from similar sell-offs [9][10] Financial Metrics - The company ended the quarter with a debt-to-adjusted EBITDA ratio of 2.2x, at the low end of its target range of 2x to 3x [8] - Owens Corning's forward P/E ratio of 9.8x is significantly lower than the average in the Construction Materials sector, indicating potential value [8] Trading Activity - Short interest in Owens Corning stock spiked by 11% in the last month, suggesting increased pressure on the stock [12] - The Options Chain indicates significant interest in Put options as a hedge, with strike prices at $170 and $175 [12]

Owens Corning (OC) reported mixed results for second-quarter 2024, wherein earnings surpassed the Zacks Consensus Estimate but net sales missed the same. On a year-over-year basis, both earnings and net sales increased on the back of strong commercial execution and manufacturing performance as well as the strategic choice to acquire Masonite. Owens Corning's shares gained 4.1% in the day trading session, but fell 5% in the after-hour trading session on Aug 6. Inside the Headlines The company reported adjust ...

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 ...