NEW YORK (TheStreet) --Shares of Gibraltar Industries Inc. (ROCK - Get Report) are down by -9.60% to $15.02 in early trading on Friday morning after the company cut its outlook for the 2014 second quarter.
Adjusted net income per diluted share is now expected to be in the range of 14 cents to 16 cents, compared to the company's previous guidance of adjusted EPS between 29 cents and 30 cents for the quarter.
The company, which manufacturers, and distributes products for the building and industrial markets, said that due to the long winter driving lower than expected 2014 first quarter results "end market demand for the second quarter did not rebound as expected."
Separately, TheStreet Ratings team rates GIBRALTAR INDUSTRIES INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate GIBRALTAR INDUSTRIES INC (ROCK) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, growth in earnings per share and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The current debt-to-equity ratio, 0.46, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.47, which illustrates the ability to avoid short-term cash problems.
- GIBRALTAR INDUSTRIES INC has improved earnings per share by 41.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GIBRALTAR INDUSTRIES INC swung to a loss, reporting -$0.18 versus $0.42 in the prior year. This year, the market expects an improvement in earnings ($0.82 versus -$0.18).
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 5.4%. Since the same quarter one year prior, revenues slightly dropped by 2.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Building Products industry and the overall market, GIBRALTAR INDUSTRIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for GIBRALTAR INDUSTRIES INC is rather low; currently it is at 19.35%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.09% trails that of the industry average.
- You can view the full analysis from the report here: ROCK Ratings Report