By Owens Corning, the renowned building-materials maker, is scheduled to release its second-quarter earnings report before the market opens on Wednesday. Below are the key details you should be aware of:
Profit Expectation
The consensus of seven analysts polled by FactSet suggests that Owens Corning’s profit is projected to decrease from $343 million in the previous year to $297.9 million.
Adjusted Earnings Forecast
Stripping out certain one-time expenses, Owens Corning is predicted to report adjusted per-share earnings of $3.25 compared to $3.83 last year, according to the consensus of 17 analysts polled by FactSet.
Revenue Projection
Analysts polled by FactSet estimate that the company’s revenue for the quarter will decline from $2.601 billion in the year-ago quarter to $2.54 billion.
Areas of Interest
Demand
Investors will closely monitor the earnings report for insight into whether demand for Owens Corning’s construction materials has improved. The company has previously expressed concerns that inflation, higher interest rates, and geopolitical tension may hinder the markets for its products. These factors have the potential to dampen repair and remodeling activity as well as housing starts, which would negatively impact Owens Corning’s business.
Storm Damage
The second quarter experienced a significant number of severe wind and hail events. While insurance companies have reported larger catastrophe losses during this period, Owens Corning may potentially benefit from the resulting need for roof repairs and reconstructions. The occurrence of storms can positively influence the company’s financial performance.
Pricing
Recent increases in prices for Owens Corning’s offerings, including insulation and roofing, have helped offset volume declines. The upcoming earnings report will shed light on whether prices continue to rise as inflation slows down. Additionally, it will indicate if consumers are willing to pay more for construction materials or if they are pulling back.
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