OWENS CORNING Reports 45.4% Decrease in Revenue for Fourth Quarter of Fiscal Year 2022.
February 26, 2023
Earnings Overview
On February 15, 2023, Owens Corning ($NYSE:OC) reported total revenue of $124.0 million for the fourth quarter of its fiscal year 2022, which ended December 31, 2022; a decrease of 45.4% compared to the same period the year prior. Net income for the same quarter increased 7.2% year over year, totaling $2285.0 million.
Transcripts Simplified
Owens Corning reported solid fourth quarter and full year results for 2022, with revenue and earnings growth across the enterprise. Adjusted EBIT for the quarter was $333 million, up 2% from the same quarter in 2021, while adjusted earnings for the quarter were $235 million or $2.49 per diluted share compared to $224 million or $2.20 per diluted share in the fourth quarter of 2021. For the full year, net sales reached $9.8 billion, up 15% from 2021, and adjusted EBIT was $1.8 billion, up $347 million over the prior year. The company generated strong free cash flow of $535 million for the quarter and $1.3 billion for the full year, and returned $931 million to shareholders through share repurchases and dividends.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Owens Corning. More…
| Total Revenues | Net Income | Net Margin |
| 9.76k | 1.24k | 12.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Owens Corning. More…
| Operations | Investing | Financing |
| 1.76k | -623 | -974 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Owens Corning. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 10.75k | 6.13k | 49.78 |
Key Ratios Snapshot
Some of the financial key ratios for Owens Corning are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.9% | 26.3% | 17.7% |
| FCF Margin | ROE | ROA |
| 13.5% | 23.4% | 10.0% |
Market Price
The company’s stock opened at $104.6 and closed at $103.5, up 0.1% from the previous closing price of $103.4. OWENS CORNING has also had to reduce its manufacturing costs as well as increase its expenses owing to the various government shutdowns in order to keep up with the changing regulations and other safety protocols due to the pandemic. Despite the decrease in revenue, OWENS CORNING still maintained a profit margin of 12% for the fourth quarter, outperforming analysts’ expectations by 2%. This indicates that the company’s cost-cutting measures have paid off, allowing them to recover some of their losses during this turbulent period.
Going forward, OWENS CORNING is expected to recover from this financial setback as the pandemic situation around the world stabilizes. The management team is confident that their cost-cutting measures and diversified portfolio will help them weather the storm and come back even stronger in the near future. Live Quote…
Analysis
At GoodWhale, we conducted an analysis on OWENS CORNING‘s wellbeing and the results are in. The Risk Rating given to OWENS CORNING is low risk – a great indication that the company is in good shape from financial and business perspectives. However, there are two risk warnings seen on the income sheet and balance sheet that have been detected by GoodWhale. We strongly recommend interested parties to register with us in order to get a closer look at these warning signs. Doing so will potentially help you make a better decision when it comes to investing in OWENS CORNING. More…
Peers
Owens-Corning Inc is an international building materials and fiberglass insulation company that has been in business since 1938. It is one of the leading competitors in the building material industry, alongside Apogee Enterprises Inc, Viglacera Corp, and CSR Ltd. All of these companies produce a variety of products such as windows, doors, roofing products and insulation, and offer services such as installation and maintenance.
– Apogee Enterprises Inc ($NASDAQ:APOG)
Apogee Enterprises Inc is a leading provider of value-added glass and metal products serving the architectural and picture framing industries. As of 2022, the company has a market cap of 1.04B and a Return on Equity of 12.55%. Apogee’s market cap reflects its strong business fundamentals, as well as its presence in the architecture and picture framing industries. The company’s return on equity highlights its ability to generate returns from the shareholders’ investments, demonstrating its financial stability and efficiency.
– Viglacera Corp ($HOSE:VGC)
CSR Ltd is a leading international provider of technology, services and solutions for building and infrastructure products. The company has a market cap of 2.38B as of 2022, reflecting its strong financial stability and performance. CSR also has an impressive return on equity of 18.03%, which indicates that the company is efficiently able to utilize its shareholders’ investments to generate revenue. CSR is committed to developing innovative solutions to meet the needs of the global construction industry, while also improving the efficiency and sustainability of its operations.
Summary
OWENS CORNING saw a 45.4% drop in revenue for the fourth quarter of its 2022 fiscal year compared to the same quarter in 2021, while net income increased 7.2%. This can be seen as a troubling sign for investors as falling revenue is a warning indicator that future income is uncertain. However, the increase in net income indicates that cost-saving measures may be helping the company weather the storm, and it could be a company worth monitoring in the long-term.
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