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The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Apogee (NASDAQ:APOG) and the rest of the commercial building products stocks fared in Q3.
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 slower Q3. As a group, revenues missed analysts’ consensus estimates by 5.6%.
In light of this news, share prices of the companies have held steady as they are up 1.6% on average since the latest earnings results.
Best Q3: 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 $342.4 million, down 3.2% year on year. This print exceeded analysts’ expectations by 2%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ EBITDA and earnings estimates.
Apogee pulled off the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 22.3% since reporting and currently trades at $83.70.
Is now the time to buy Apogee? 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 solutions and infrastructure solutions.
AZZ reported revenues of $409 million, up 2.6% year on year, in line with analysts’ expectations. The business performed better than its peers, but it was unfortunately a slower quarter with full-year revenue guidance missing analysts’ expectations.
The market seems content with the results as the stock is up 2.6% since reporting. It currently trades at $83.68.
Is now the time to buy AZZ? Access our full analysis of the earnings results here, it’s free.