NEW YORK (TheStreet) -- Shares of Headwaters (HW) are tumbling by 9.58% to $17.74 on heavy trading volume late Tuesday afternoon, even though the South Jordan, UT-based company reported better-than-expected results for the 2016 fiscal second quarter.
Before the opening bell, the building products company reported adjusted earnings of 13 cents per diluted share, exceeding analysts' projections of 10 cents per share.
Revenue for the period was $202.3 million, above Wall Street's estimates of $198.8 million.
The company's building products segment revenue climbed by 21% year-over-year to $129.2 million.
"It was the highest building products organic growth rate since 2012, and we experienced double digit growth in all four major product groups," CEO Kirk Benson said in a statement.
"All of our end markets in building products were strong during the March quarter and we were particularly pleased with the strength of the repair and remodel market," he added.
About 1.72 million of the company's shares were traded so far today, well above its average volume of 602,457 shares per day.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.
The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, notable return on equity, good cash flow from operations and solid stock price performance.
The team believes its strengths outweigh the fact that the company has had generally high debt management risk by most measures that were evaluated.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: HW