NCI Building (NCS) Q2 Earnings Beat Estimates, Hikes Outlook
Zacks Investment Research | Jun 07, 2017 08:48AM ET
NCI Building Systems, Inc. (NYSE:NCS) posted adjusted earnings of 16 cents per share for second-quarter fiscal 2017 (ended Apr 30, 2017), fourfold the earnings of 4 cents in the prior-year quarter.
Earnings also beat the Zacks Consensus Estimate of 12 cents, leading to a positive earnings surprise of 33%.
Including one-time items, the company reported earnings per share of 24 cents compared with 3 cents a share recorded in the prior-year quarter.
Operational Update
Sales rose 12.8% year over year to $420 million in the quarter and also surpassed the Zacks Consensus Estimate of $415 million. Revenues came within the company’s guided range of $400–$425 million. The year-over-year growth was bolstered by an improvement in underlying tonnage volumes and increased pricing.
Cost of sales increased 12.6% year over year to $319 million from $284 million in the year-ago quarter. Gross profit increased 14% year over year to $100.5 million. Consequently, gross margin expanded 10 basis points (bps) to 23.9% in the quarter, aided by a combination of manufacturing efficiencies, and improved segment and product mix. This was particularly witnessed in insulated metal panels (IMP) as the result of higher architectural panel sales.
Engineering, selling, general and administrative expenses inched up 1% to $75 million. The company reported adjusted operating income of $23.6 million, which soared around 107% from $11.4 million in the year-ago quarter. Operating margin was at 5.6%, a 250 bps improvement year over year.
Segment Performance
Revenues at the Building Systems segment went up 18% to $163 million from $138 million in the year-earlier quarter. The segment reported adjusted operating income of $7.2 million, a 13% rise from $6.4 million in the year-ago quarter.
The Coatings division reported revenues of $63.3 million, advancing 15% year over year. Adjusted operating profit improved 16% year over year to $5.5 million.
The Metal Component segment’s revenues climbed 15% year over year to $271 million. On adjusted basis, operating profit surged 67% year over year to $30.8 million.
NCI Building Systems, Inc. Price, Consensus and EPS Surprise
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