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Q3 Earnings: Which Home Construction Materials Stocks Are Rising – And Falling – Amidst Economic Uncertainty

HomeQ3 Earnings: Which Home Construction Materials Stocks Are Rising – And Falling – Amidst Economic Uncertainty

Q3 Earnings: Which Home Construction Materials Stocks Are Rising – And Falling – Amidst Economic Uncertainty

Q3 Earnings: Which Home Construction Materials Stocks Are Rising – And Falling – Amidst Economic Uncertainty

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Home Construction Materials Stocks' Q3 Earnings: A Mixed Bag

The third-quarter earnings of home construction materials stocks have been a mixed bag, with some companies exceeding analysts' expectations while others falling short. The 12 home construction materials stocks we track reported a collective revenue miss of 0.9% compared to analysts' consensus estimates.

Hayward (NYSE:HAYW) - A Strong Quarter

Hayward is credited with introducing the first variable-speed pool pump and makes residential and commercial pool equipment and accessories. In its latest earnings report, Hayward reported revenues of $227.6 million, up 3.3% year on year. This exceeded analysts' expectations by 2.1%, making it a very strong quarter for the company.

[CEO Comment]

"I am pleased to report third-quarter results consistent with expectations," said [CEO Name]. Hayward's total revenue was $227.6 million, which was up from $220.5 million in the same period last year. The company's net income was $31.4 million, compared to $28.2 million in the previous quarter.

Trex (NYSE:TREX) - A Strong Beat

Trex Company makes wood-alternative decking, railing, and patio furniture. In its latest earnings report, Trex reported revenues of $233.7 million, down 23.1% year on year, but outperforming analysts' expectations by 3.7%. The company's net income was $34.8 million, compared to $29.2 million in the previous quarter.

JELD-WEN (NYSE:JELD) - A Disappointing Quarter

JELD-WEN is a general wood-making company that manufactures doors, windows, and other related building products. In its latest earnings report, JELD-WEN reported revenues of $934.7 million, down 13.2% year on year, falling short of analysts' expectations by 5.6%. The company's net income was $44.1 million, compared to $49.5 million in the previous quarter.

Market Update

The market has been impacted by the Fed's series of rate hikes in 2022 and 2023, which have helped to cool inflation significantly from its post-pandemic highs. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December). However, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes.

Investing in Winners

If you're looking to invest in companies with rock-solid fundamentals that are poised for growth regardless of the political or macroeconomic climate, check out our Top 6 Stocks. These companies have a strong track record of delivering returns and are worth considering for your investment portfolio.

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Conclusion

The third-quarter earnings of home construction materials stocks have been a mixed bag, with some companies exceeding analysts' expectations while others falling short. Hayward's strong quarter and Trex's solid beat stand out from the crowd, but JELD-WEN's disappointing performance is a cause for concern. As we look ahead to 2025, it's clear that the market will be impacted by a range of factors, including rate cuts, trade policy changes, and corporate tax reforms.