AZEK Company’s Non-GAAP EPS Beats Expectations by $0.07, Revenue Surpasses Estimate by $20.29M
December 2, 2023
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The AZEK ($NYSE:AZEK) Company, a leading provider of low-maintenance building solutions, recently released its financial results for the quarter ending June 30th. The company reported Non-GAAP earnings per share (EPS) of $0.36, surpassing expectations by $0.07, and revenue of $388.8M, exceeding estimates by $20.29M. Its offerings range from composite decking and railings to trim and moulding products, as well as outdoor lighting solutions. AZEK also provides a wide selection of capped composite and PVC decking, railing, and fencing products that are designed to provide lasting beauty and performance. The company’s strong performance in the quarter was driven by a combination of higher sales volumes and price increases.
This was further supported by the launch of new products, as well as increased market share in certain product categories. AZEK also saw a substantial increase in its gross profit margin quarter-over-quarter. Overall, AZEK’s strong financial results clearly demonstrate the strength of its business model and its ability to bring value to its customers. With its competitive product offering, the company is well-positioned to continue its growth trajectory in the coming quarters.
Earnings
AZEK COMPANY recently released its earning report of FY2023 Q3 ending June 30 2021, which showed a total revenue of 327.45M USD and net income of 21.77M USD – a decrease of 17.1% in total revenue and 20.8% in net income compared to the previous year.
However, the Non-GAAP EPS beat expectations by $0.07 and the total revenue surpassed estimates by $20.29M. The company has seen impressive growth over the last three years, increasing total revenue from 327.45M USD to 387.55M USD. This suggests that AZEK COMPANY is taking strides towards financial success, despite the current difficult economic climate. It is likely that the company will continue to see progress over the coming months and years, as long as market conditions remain favourable.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Azek Company. More…
| Total Revenues | Net Income | Net Margin |
| 1.37k | 67.95 | 5.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Azek Company. More…
| Operations | Investing | Financing |
| 362.54 | -88.5 | -116.54 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Azek Company. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.37k | 935.91 | 9.57 |
Key Ratios Snapshot
Some of the financial key ratios for Azek Company are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.1% | 28.8% | 9.6% |
| FCF Margin | ROE | ROA |
| 20.0% | 5.7% | 3.5% |
Market Price
On Tuesday, AZEK COMPANY announced its quarterly results and they were impressive. The stock opened at $31.6 and closed at $31.5, down by 0.8% from the previous closing price of 31.8. Investors responded positively to the news, with the stock still remaining near its opening price. AZEK COMPANY attributed the strong performance to its focus on product innovation and customer satisfaction, which enabled it to generate higher revenues and profits.
The company’s robust financial performance also highlights its strong management and cost cutting measures, which have allowed it to maintain a competitive advantage in the industry. Overall, AZEK COMPANY’s earnings report exceeded analysts’ expectations and was well received in the market. The strong earnings report is a testament to the company’s commitment to continuing to drive innovation and delivering customer value. Live Quote…
Analysis
GoodWhale conducted an analysis of AZEK COMPANY‘s wellbeing, and based on the Star Chart, AZEK COMPANY is classified as a ‘rhino’, which we conclude has achieved moderate revenue or earnings growth. AZEK COMPANY has a very high health score of 8/10 with regards to its cashflows and debt, indicating that it is capable of safely riding out any crisis without the risk of bankruptcy. Investors interested in AZEK COMPANY can be confident in its stability, however the company is strong in liquidity and median in asset, growth, profitability and weak in dividend. This may mean that investors looking for a particular return from their investment may be best looking elsewhere. More…
Peers
The AZEK Co Inc competes with Louisiana-Pacific Corp, Byggma ASA, and Masco Corp in the market for wood-based building products. These companies all produce similar products, but AZEK has a competitive advantage in terms of product quality and customer service.
– Louisiana-Pacific Corp ($NYSE:LPX)
Louisiana-Pacific Corp is a publicly traded company with a market capitalization of $3.71 billion as of March 2022. The company has a return on equity of 63.05%. Louisiana-Pacific Corp is a leading manufacturer of building products and engineered wood products. The company’s products are used in a variety of applications, including residential construction, commercial construction, and industrial applications. Louisiana-Pacific Corp operates manufacturing facilities in the United States, Canada, and Chile.
– Byggma ASA ($LTS:0DVM)
Byggma ASA is a trusted provider of construction and building materials in Norway. The company has a market capitalization of 2.06 billion as of 2022 and a return on equity of 29.21%. Byggma ASA is committed to providing quality products and services to its customers, and its strong financial performance is a testament to its success. The company’s products and services are in high demand, and its customer base is growing. Byggma ASA is well-positioned to continue its growth and expansion in the Norwegian construction market.
– Masco Corp ($NYSE:MAS)
Masco Corporation is a global leader in the design, manufacture and distribution of branded home improvement and building products. Our products include faucets, cabinets, windows, doors, plumbing fixtures, architectural hardware, lumber and other building materials. We operate more than 60 manufacturing facilities in the United States, Canada, Europe and Asia. Our products are sold under a variety of brand names including Delta®, Hansgrohe®, Brizo®, Axor®, InSinkErator®, KraftMaid®, Merillat®, QualityCabinets®, Masco Cabinetry®, Kichler®, Simonswerk® and many other regional brands. Our products are distributed through a variety of channels including home centers, mass merchants, Showrooms, International distributors, OEMs and other specialty retailers.
Summary
The company reported non-GAAP earnings per share (EPS) of $0.36, which beat analyst estimates by $0.07. Revenue for the period totaled $388.8 million, beating analyst expectations by $20.29 million. Analysis of the Company’s financials suggest that it is well-positioned to continue to perform strongly in the future.
Investors can benefit from opportunities that AZEK Company offers through its innovative products and services. The strong fundamentals and the financial position of the company make it an attractive investment option.
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