Overview
Owens Corning Q3 net sales fell 3% yr/yr, missing analyst expectations
Adjusted EPS for Q3 missed analyst expectations
Company recorded $780 mln impairment charge related to Doors business
Outlook
Owens Corning expects Q4 revenue to be $2.1 bln to $2.2 bln
Company anticipates Q4 adjusted EBITDA margin of 16% to 18%
Company expects minimal Q4 tariff impact, reducing exposure to $10 mln
Result Drivers
WEAK RESIDENTIAL DEMAND - Co cites weakening residential demand trends in the U.S. impacting volumes in repair and remodel and new construction product lines
IMPAIRMENT CHARGE - Co recorded $780 mln non-cash impairment charge related to Doors business
EFFICIENCY IMPROVEMENTS - Co highlights strategic choices and structural improvements leading to greater efficiency and performance
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Miss | $2.68 bln | $2.69 bln (17 Analysts) |
Q3 Adjusted EPS | Miss | $3.67 | $3.70 (17 Analysts) |
Q3 EPS | -$5.93 | ||
Q3 NET INCOME | -$495 mln | ||
Q3 Adjusted EBITDA | Miss | $638 mln | $643.74 mln (15 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 8 "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 $170.50, about 28% above its November 4 closing price of $122.72
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago
Press Release: ID:nBwbGBWmTa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)