Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Apogee (NASDAQ: APOG) and its peers.
Commercial building products companies, which often serve more complicated projects, can supplement their core business with higher-margin installation and consulting services revenues. More recently, advances to address labor availability and job site productivity have spurred innovation. Additionally, companies in the space that can produce more energy-efficient materials have opportunities to take share. However, these companies are at the whim of commercial construction volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates. Additionally, the costs of raw materials can be driven by a myriad of worldwide factors and greatly influence the profitability of commercial building products companies.
The 5 commercial building products stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was 1.6% above.
Luckily, commercial building products stocks have performed well with share prices up 14.6% on average since the latest earnings results.
Apogee (NASDAQ: APOG)
Involved in the design of the Apple Store on Fifth Avenue in New York City, Apogee (NASDAQ: APOG) sells architectural products and services such as high-performance glass for commercial buildings.
Apogee reported revenues of $345.7 million, down 4.5% year on year. This print exceeded analysts’ expectations by 4.2%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EBITDA estimates and full-year revenue guidance beating analysts’ expectations.
Apogee achieved the highest full-year guidance raise of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 13.9% since reporting and currently trades at $39.48.
Is now the time to buy Apogee? Access our full analysis of the earnings results here, it’s free.
Best Q1: Insteel (NYSE: IIIN)
Growing from a small wire manufacturer to one of the largest in the U.S., Insteel (NYSE: IIIN) provides steel wire reinforcing products for concrete.
Insteel reported revenues of $160.7 million, up 26.1% year on year, outperforming analysts’ expectations by 7.2%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Insteel scored the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 37.9% since reporting. It currently trades at $36.78.
Is now the time to buy Insteel? Access our full analysis of the earnings results here, it’s free.
AZZ (NYSE: AZZ)
Responsible for projects like nuclear facilities, AZZ (NYSE: AZZ) is a provider of metal coating and power infrastructure solutions.
AZZ reported revenues of $351.9 million, down 4% year on year, falling short of analysts’ expectations by 4.3%. It was a slower quarter as it posted a miss of analysts’ EBITDA estimates and full-year revenue guidance meeting analysts’ expectations.
AZZ delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 17.2% since the results and currently trades at $91.10.
Read our full analysis of AZZ’s results here.
Johnson Controls (NYSE: JCI)
Founded after patenting the electric room thermostat, Johnson Controls (NYSE: JCI) specializes in building products and technology solutions, including HVAC systems, fire and security systems, and energy storage.
Johnson Controls reported revenues of $5.68 billion, up 1.4% year on year. This number topped analysts’ expectations by 0.7%. Overall, it was a strong quarter as it also logged an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ adjusted operating income estimates.
The stock is up 16% since reporting and currently trades at $102.98.
Read our full, actionable report on Johnson Controls here, it’s free.
Janus (NYSE: JBI)
Standing out with its digital keyless entry into self-storage room technology, Janus (NYSE: JBI) is a provider of easily accessible self-storage solutions.
Janus reported revenues of $210.5 million, down 17.3% year on year. This result beat analysts’ expectations by 2%. It was a very strong quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EPS estimates.
Janus had the slowest revenue growth among its peers. The stock is up 15.7% since reporting and currently trades at $8.27.
Read our full, actionable report on Janus here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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