Owens Corning misses Q3 profit estimates on weak residential markets, low storm activity
OC•Owens Corning reported Q3 sales of $2.49 billion and adjusted EPS of $2.44, both below analyst estimates of $2.62 billion and $3.06. The company expects Q4 revenue of $2.0 billion to $2.2 billion and an adjusted EBITDA margin of about 10% to 12%.
1. Quarterly results
Owens Corning’s Q3 sales fell 7% year over year to $2.49 billion, below the $2.62 billion analyst estimate. Adjusted EPS was $2.44, below the $3.06 estimate, while adjusted EBITDA of $489 million missed the $555.48 million estimate. The company reported a net loss of $250 million, or $3.15 per share.
2. Market and cost pressures
The company cited weak residential markets, low storm activity and cost inflation for the declines. It said low storm activity and distribution destocking weighed on roofing demand, while higher transportation and input material costs increased expenses.
3. Fourth-quarter outlook
Owens Corning expects Q4 revenue of $2.0 billion to $2.2 billion and an adjusted EBITDA margin of about 10% to 12%. It anticipates significant input and delivery cost inflation in the quarter.
