Owens Corning sees Q3 revenue at $2.6 bln to $2.7 bln, slightly below prior year
Company expects Q3 adjusted EBITDA margin of 20% to 22%
Owens Corning anticipates $40 mln incremental Q3 costs from inflation tied to Iran conflict
Q2 results beat estimates
US building products maker's Q2 revenue was flat yr/yr, beating analyst expectations
Adjusted EPS for Q2 beat analyst expectations
Company returned $264 mln to shareholders via dividends and share repurchases
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$2.76 bln
$2.65 bln (16 Analysts)
Q2 Adjusted EPS
Beat
$3.93
$3.08 (16 Analysts)
Q2 EPS
$3.84
Q2 Adjusted EBITDA
Beat
$660 mln
$561.42 mln (12 Analysts)
Drivers, cost synergies and analyst view
COMMERCIAL EXECUTION - Co attributed Q2 performance to disciplined commercial work and execution of company-specific initiatives
BRANDED PRODUCTS DEMAND - Demand for high-performing branded building products supported Q2 results, per company
COST SYNERGIES - Co achieved $135 mln of enterprise run-rate cost synergies, exceeding its commitment, and is on track for further structural cost improvements
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell". The average consensus recommendation for the construction supplies & fixtures peer group is "buy". Wall Street's median 12-month price target for Owens Corning is $165.00, about 13.4% above its August 4 closing price of $145.53. The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago.
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