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 ...

SECOND-QUARTER 2024 RESULTS Brian Chambers | Chair & Chief Executive Officer Todd Fister | Chief Financial Officer August 6, 2024 | Q2 2024 FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES This presentation and the associated remarks contain forward-looking statements. We caution you against relying on these statements as they are subject to risks, uncertainties and other factors and actual results may differ materially from those results projected in the statements. These risks, uncertainties and other fac ...

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 ...

Financial Performance - Net earnings attributable to Owens Corning were $285 million in Q2 2024, down from $345 million in Q2 2023, while Adjusted EBIT increased to $588 million from $534 million year-over-year [138]. - Net sales for Q2 2024 reached $2.789 billion, a $226 million increase compared to $2.563 billion in Q2 2023, primarily driven by revenues from the newly acquired Doors segment [151]. - Gross margin for Q2 2024 was $867 million, up $115 million from $752 million in Q2 2023, with a gross margin percentage of 31% compared to 29% in the prior year [150][152]. - Adjusted EBIT for Q2 2024 was $588 million, compared to $534 million in Q2 2023 [162]. - Net earnings attributable to Owens Corning for Q2 2024 were $285 million, down from $345 million in Q2 2023 [162]. Segment Performance - Roofing segment net sales for Q2 2024 were $1,105 million, a decrease of 2% from $1,123 million in Q2 2023 [164]. - Insulation segment net sales for Q2 2024 increased by 1% to $916 million, compared to $905 million in Q2 2023 [168]. - EBIT for the Roofing segment in Q2 2024 was $373 million, up from $338 million in Q2 2023 [164]. - EBIT for the Insulation segment in Q2 2024 increased to $183 million from $163 million in Q2 2023 [168]. - The Doors segment reported net sales of $311 million for the second quarter and year-to-date 2024, attributed to the acquisition of Masonite completed on May 15, 2024 [175]. - EBIT for the Doors segment was $34 million for the second quarter and year-to-date 2024, also due to the Masonite acquisition [176]. - The Composites segment experienced a 12% decrease in net sales to $546 million for the second quarter of 2024 compared to the same period in 2023, driven by lower sales volumes and selling prices [179]. - EBIT in the Composites segment decreased by $26 million to $61 million for the second quarter of 2024, impacted by lower selling prices and higher production downtime [180]. Acquisition and Strategic Initiatives - The Company acquired Masonite International Corporation for $3.2 billion, contributing $311 million in revenues and $34 million in EBIT from May 15, 2024, to June 30, 2024 [140]. - The Masonite acquisition is expected to contribute to future growth and operational synergies [206]. - The Company incurred $17 million in costs related to the strategic review of its global glass reinforcements business, which generates approximately $1.3 billion in annual revenues [146]. Cash Flow and Debt Management - Cash and cash equivalents decreased to $254 million as of June 30, 2024, from $968 million a year earlier, while operating activities generated $517 million in cash, up from $330 million in the same period of 2023 [139]. - Total debt as of June 30, 2024, was $5.6 billion, including $400 million of senior notes due in the fourth quarter of 2024 [189]. - The Company issued $500 million of 2027 senior notes and $800 million of 2034 senior notes in May 2024 to repay a portion of the borrowings used for the Masonite acquisition [192]. - Net cash flow provided by operating activities increased by $187 million to $517 million for the six months ended June 30, 2024, compared to $330 million in 2023 [199]. - Net cash flow used for investing activities increased by $3.1 billion to $(3,154) million for the six months ended June 30, 2024, primarily due to the Masonite acquisition [200]. - Net cash flow provided by financing activities increased by $1.7 billion to $1,321 million for the six months ended June 30, 2024, driven by proceeds from long-term debt and the Receivables Securitization Facility [200]. Expenses and Taxation - Marketing and administrative expenses increased by $42 million in Q2 2024, primarily due to the addition of the Doors segment's expenses and inflationary pressures [153]. - Interest expense, net, rose to $64 million in Q2 2024, an increase of $41 million compared to $23 million in Q2 2023, driven by higher interest on the 364-Day Credit Facility [156]. - The effective tax rate for Q2 2024 was 28%, influenced by U.S. state and local income tax expenses and foreign rate differentials [157]. - Restructuring, acquisition, and divestiture-related costs totaled $97 million for Q2 2024, compared to $47 million for Q2 2023 [159]. - Income tax expense for Q2 2023 was $121 million, with an effective tax rate of 26% [158]. Market Outlook and Economic Conditions - The average Seasonally Adjusted Annual Rate (SAAR) of U.S. housing starts in Q2 2024 was approximately 1.348 million, down from 1.447 million in Q2 2023 [172]. - The Company expects stable demand in the North American new residential construction market, but acknowledges potential impacts from higher interest rates and input cost inflation [173]. - The Company anticipates continued economic uncertainty affecting the global glass reinforcements market, with a focus on managing costs and capital expenditures [182]. Share Repurchase and Corporate Governance - As of June 30, 2024, 8.1 million shares remained available for repurchase under the Company's share repurchase program, which allows for the repurchase of up to 10 million shares [149]. - General corporate expenses for 2024 are estimated to be between $255 million and $265 million [185]. Safety and Compliance - The Recordable Incident Rate (RIR) for the three months ended June 30, 2024, was 0.46, down from 0.59 in the same period a year ago [203]. - The company maintains comprehensive safety programs aimed at reducing risks and improving employee well-being [203]. - The company does not expect supplier finance programs to materially affect its overall financial condition or liquidity in the future [197].

Analysts on Wall Street project that Owens Corning (OC) will announce quarterly earnings of $4.37 per share in its forthcoming report, representing an increase of 3.6% year over year. Revenues are projected to reach $2.87 billion, increasing 12.1% from the same quarter last year. Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.5% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this pe ...

The construction materials company's shares have seen an increase of 3.67% over the last month, not keeping up with the Construction sector's gain of 10.96% and outstripping the S&P 500's loss of 0.21%. In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.63 per share and a revenue of $11.21 billion, indicating changes of +8.39% and +15.84%, respectively, from the former year. Our research suggests that these changes in estimates have a direct relationship with upcoming ...

The most recent trading session ended with Owens Corning (OC) standing at $174.39, reflecting a +0.77% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily loss of 0.78%. Elsewhere, the Dow lost 1.29%, while the tech-heavy Nasdaq lost 0.7%. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $15.44 per share and a revenue of $11.23 billion, representing changes of +7.07% and +16.03%, respectively, from the prior year. The Zacks Rank system, ...

Owens Corning's (OC) focus on improving manufacturing efficiencies, ongoing product innovation, effective pricing strategies as well as reducing costs has been driving growth. Also, its focus on higher-value applications centering around building, construction, renewable energy and infrastructure markets bodes well. Moreover, targeted acquisitions are reinforcing its market position and contributing to its overall success. Image Source: Zacks Investment Research The growth prospect of this current Zacks Ran ...

Prior to today's trading, shares of the construction materials company had lost 2.24% over the past month. This has was narrower than the Construction sector's loss of 4.68% and lagged the S&P 500's gain of 3.22% in that time. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $15.48 per share and a revenue of $11.23 billion, representing changes of +7.35% and +16.03%, respectively, from the prior year. Our research demonstrates that these adjustments in estimates directly ...

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