Premium steel and iron company Gibraltar Industries, Inc. ROCK reported mixed second-quarter 2016 results.
Quarterly earnings of 46 cents per share handily beat the Zacks Consensus Estimate of 39 cents. The bottom line also exceeded the year-ago tally of 25 cents by 84% as well as came in above the company guided range. The upside was driven by a stronger RBI business, greater operational efficiency and optimal utilization of productive resources.
However, revenues decreased year over year on account of industrial headwinds.
As of Jul 28, 2016 Gibraltar Industries closed the trading session at $34.29 per share. However it remains to be seen how the stock performs after posting the second-quarter results.
GIBRALTAR INDUS Price, Consensus and EPS Surprise
GIBRALTAR INDUS Price, Consensus and EPS Surprise | GIBRALTAR INDUS Quote
Performance in Details
Gibraltar Industries’ net sales were $263.1 million in the quarter, up 3.9% year over year. However, the top line missed the Zacks Consensus Estimate of $271 million.
Gross profit margin increased 780 basis points (bps) to 25.2%. Selling, general and administrative (SG&A) expenses were $40.4 million, up from $32.9 million in the prior-year quarter. Gibraltar
Industries reported adjusted operating margin of 10.2% in the quarter, up 380 bps year over year.
Segment Details
Residential Products segment generated revenues of $120 million, down 11% year over year. Segmental sales declined due to lower sale of postal products.
Adjusted operating margin was 17.5%, up 690 bps year over year. The improvement was attributable to greater operational efficiency, accomplishment of the centralized mailbox contract and early receivables from the 80/20 simplification plan.
Industrial and Infrastructure Products yielded revenues of $81 million, down 20% year over year. The decline stemmed from the divestiture of the company’s industrial business in Europe, lower volume of orders from energy-related markets and lower steel cost prices on customer pricing.
The segment’s adjusted operating margin was 8.7%, up 340 bps year over year. The improvement was driven by better management of raw input expenses, superior manufacturing competence and benefits received from 80/20 simplification plan.
The Renewable Energy & Conservation segment’s revenues came in at $62.1 million in the quarter under review, substantially higher than $17.1 million in the year-ago comparable period. Solid demand for RBI’s ground-mounted solar racking and commercial greenhouse goods supported the upside.