Why Headwaters (HW) Is Rising Today

NEW YORK (TheStreet) -- Headwaters  (HW) was rising 15.23% to $12.18 on Tuesday after the company reported first-quarter earnings that beat analysts' expectations.

Headwaters, which provides goods and services to the construction industry, reported earnings per share of 5 cents, which surpassed analysts' expectations of a loss of 2 cents per share. Revenues also rose 10.7% year-over-year to $165.6 million, which beat the analysts' estimates of $159.61 million.

Headwaters also raised its adjusted EBIDTA guidance for the fiscal year 2014 to a range of $130 million to $145 million from a previous range of $125 million to $140 million.

"We had a particularly strong October, leading to combined Adjusted EBITDA growth of 26% in our light and heavy construction materials segments. While the trim board product line that we acquired last year was accretive, our Adjusted EBITDA growth was primarily organic," said Chairman and CEO Kirk A. Benson in the company's statement. "We anticipate 2014 margin improvement year-over-year in both our light and heavy segments, and our first quarter was a solid start with combined margin improvement of more than 170 basis points."

TheStreet Ratings team rates HEADWATERS INC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate HEADWATERS INC (HW) 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 revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including poor profit margins and generally higher debt management risk."

If you liked this article you might like

S&P 500, Dow and Nasdaq Post New Records as Crude Rallies

Wall Street on Track for Across-the-Board Records as Crude Rallies

How to Trade These Most Active Stocks -- LifeLock, Tyson Foods and More

Midday Report: 3M Drags on Dow After Downgrade; Crude Surges to Boost S&P 500

Stocks Trade Near Records as Crude Oil Surge Plateaus