Owens Corning stock hits 3-week high on Q1 earnings beat

Apr. 27, 2022 11:13 AM ETOwens Corning (OC)By: Jessica Kuruthukulangara, SA News Editor

Man Installing Insulation

DonNichols/E+ via Getty Images

  • Owens Corning (NYSE:OC) stock rose to a 3-week high after the insulation and roofing producer reported better-than-expected Q1 results.
  • Q1 adj. EPS was $2.84 vs. consensus estimate of $2.44.
  • Revenue grew 23% to $2.3B, primarily driven by higher selling prices.
  • Composites net sales rose 28% to $714M, insulation net sales increased 23% to $859M, and roofing net sales rose 18% to $838M.
  • As part of its review of strategic alternatives for its thermoplastic dry-use chopped strands (DUCS) product line, OC recently received a binding offer relating to the sale of DUCS manufacturing assets in Chambéry, France.
  • The deal, which could complete by Q2-end, would result in a divestiture of ~$100M of revenue on an annualized basis.
  • OC will convert the other two DUCS facilities to produce glass fiber supporting building and construction applications.
  • The company also provided Q2 guidance, projecting net sales and adj. EBIT Y/Y growth. Segment-wise outlook for Q2:

  • OC expects the U.S. residential housing market and global commercial and industrial markets to remain strong in the near term.
  • It is closely managing ongoing impacts of inflation, supply chain disruptions and regional impacts of the COVID-19 pandemic.
  • OC stock has slipped 1.1% YTD.
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