Owens Corning Reports Lower Revenue and Earnings, But Beats Adjusted EPS Estimates

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Owens Corning ($NYSE:OC), a leading manufacturer of insulation, roofing, and fiberglass composites, recently reported lower revenue and earnings for the most recently completed quarter. Despite the decrease, the company managed to beat their adjusted earnings per share (EPS) estimates for the quarter. They are a leader in building materials that include fiberglass, insulation, roofing, composites, and related products. Their products are used in residential, commercial, and industrial applications.

Additionally, they saw some margin compression due to higher raw material costs and operational challenges as a result of the pandemic. Despite the lower revenue and earnings numbers, Owens Corning’s management remained confident in their ability to navigate the challenges posed by the pandemic. They anticipate that their operations will be able to return to normalcy as the vaccine rollout continues and restrictions start to be lifted. Overall, Owens Corning reported lower revenue and earnings for the most recently completed quarter, however their adjusted EPS exceeded expectations.

Earnings

In its latest earnings report for the fiscal year 2023 second quarter ending June 30 2021, OWENS CORNING reported total revenue of 2239.0 million USD and net income of 298.0 million USD. This marked a 13.9% decrease in total revenue and a 13.1% decrease in net income when compared to the previous year.

However, the company still managed to beat its adjusted EPS estimates. It is worth noting that OWENS CORNING’s total revenue has seen a significant growth over the last three years, increasing from 2239.0 million USD to 2563.0 million USD. This indicates that despite the current dip in revenue and income, OWENS CORNING still remains a financially sound company with promising future prospects.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Owens Corning. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Owens Corning. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Owens Corning. More…

Key Ratios Snapshot

Some of the financial key ratios for Owens Corning are shown below. More…

Market Price

This news caused its stock to open at $110.9 and close at $110.6, representing a decline of 10.3% from its previous closing price of 123.4. Although the quarterly earnings were down due to increased production costs and lower sales volumes, Owens Corning reaffirmed its commitment to increasing profitability in the future. Live Quote…

Analysis

At GoodWhale, we have been analyzing the financials of OWENS CORNING. Our Star Chart gives it a high score of 8 out of 10 for its cashflows and debt, which means that it is capable of paying off its debt and funding future operations. OWENS CORNING is strong in dividend, growth, and profitability, and medium in asset. By assessing all of these factors, we can conclude that OWENS CORNING is classified as a ‘Gorilla’ – a type of company that has achieved stable and high revenue or earning growth due to their strong competitive advantage. Given its long-term outlook and strong competitive position, we think that growth-oriented investors would be especially interested in this company. It also presents a great opportunity for income-seeking investors, as their dividend yield is much higher compared to industry peers. Therefore, any investor looking for a reliable source of dividend income would be interested in this company. 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 has recently reported a decline in both revenue and earnings for the quarter. Despite this, the company’s adjusted earnings per share (EPS) was able to exceed estimates. The stock price for Owens Corning fell in response to the news. As an investment, analysts are divided on the company given the uncertain economic climate. On the one hand, the company’s strong cash position and ability to generate free cash flow may make it attractive in the long run.

However, the recent downturn in earnings and revenue will be a concern for investors who may be wary of investing in a company that is not expected to grow in the near future. It is important to consider both sides of the investment equation when determining whether Owens Corning is a good buy.