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Unpacking Q3 Earnings: Vulcan Materials (NYSE:VMC) In The Context Of Other Building Materials Stocks

VMC Cover Image

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Vulcan Materials (NYSE: VMC) and the best and worst performers in the building materials industry.

Traditionally, building materials companies have built competitive advantages with economies of scale, brand recognition, and strong relationships with builders and contractors. 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 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 building materials companies.

The 9 building materials stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 1% while next quarter’s revenue guidance was 1.1% below.

In light of this news, share prices of the companies have held steady as they are up 2.6% on average since the latest earnings results.

Vulcan Materials (NYSE: VMC)

Founded in 1909, Vulcan Materials (NYSE: VMC) is a producer of construction aggregates, primarily crushed stone, sand, and gravel.

Vulcan Materials reported revenues of $2.29 billion, up 14.4% year on year. This print exceeded analysts’ expectations by 0.8%. Overall, it was a satisfactory quarter for the company with a decent beat of analysts’ adjusted operating income estimates but full-year EBITDA guidance slightly missing analysts’ expectations.

Vulcan Materials Total Revenue

Vulcan Materials scored the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 1.8% since reporting and currently trades at $300.20.

Is now the time to buy Vulcan Materials? Access our full analysis of the earnings results here, it’s free.

Best Q3: Carlisle (NYSE: CSL)

Originally founded as Carlisle Tire and Rubber Company, Carlisle Companies (NYSE: CSL) is a multi-industry product manufacturer focusing on construction materials and weatherproofing technologies.

Carlisle reported revenues of $1.35 billion, flat year on year, outperforming analysts’ expectations by 1.2%. The business had a very strong quarter with an impressive beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ organic revenue estimates.

Carlisle Total Revenue

The market seems happy with the results as the stock is up 8.3% since reporting. It currently trades at $358.59.

Is now the time to buy Carlisle? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: Tecnoglass (NYSE: TGLS)

The first-ever Colombian company to trade on the NASDAQ, Tecnoglass (NYSE: TGLS) is a manufacturer of architectural glass, windows, and aluminum products.

Tecnoglass reported revenues of $260.5 million, up 9.3% year on year, falling short of analysts’ expectations by 2.1%. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.

As expected, the stock is down 6.3% since the results and currently trades at $52.47.

Read our full analysis of Tecnoglass’s results here.

UFP Industries (NASDAQ: UFPI)

Beginning as a lumber supplier in the 1950s, UFP Industries (NASDAQ: UFPI) is a holding company making building materials for the construction, retail, and industrial sectors.

UFP Industries reported revenues of $1.56 billion, down 5.4% year on year. This result missed analysts’ expectations by 3.2%. Overall, it was a disappointing quarter as it also logged a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

UFP Industries had the slowest revenue growth among its peers. The stock is up 19.6% since reporting and currently trades at $107.69.

Read our full, actionable report on UFP Industries here, it’s free.

Sherwin-Williams (NYSE: SHW)

Widely known for its success in the paint industry, Sherwin-Williams (NYSE: SHW) is a manufacturer of paints, coatings, and related products.

Sherwin-Williams reported revenues of $6.36 billion, up 3.2% year on year. This number surpassed analysts’ expectations by 2.6%. Overall, it was a strong quarter as it also put up an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ revenue estimates.

Sherwin-Williams delivered the biggest analyst estimates beat among its peers. The stock is up 4.7% since reporting and currently trades at $356.46.

Read our full, actionable report on Sherwin-Williams here, it’s free.

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