Why James Hardie Industries Stock Zoomed 8% Higher Today
Key Points
The construction materials specialist published preliminary results.
Its second-quarter performance was better than it anticipates.
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Construction materials supplier James Hardie Industries (NYSE: JHX) was supplying hefty gains for its investors on Tuesday. The company's share price ballooned by slightly over 8% on the day, thanks to preliminary results that impressed the market. An improved outlook for certain of its products helped too.
Upside surprise
Before market open, James Hardie published said figures, specifically for its second quarter of fiscal 2016. The company said its net sales for the period should come in at $1.29 billion to $1.30 billion.
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In terms of profitability, the company's non-GAAP (generally accepted accounting principles) adjusted net income is anticipated to be $151 million to $157 million ($0.26 to $0.27 per share).
Both anticipated metrics are well above the consensus analyst estimates. On average, prognosticators following James Hardie are modeling only $1.21 billion for net sales, and a much lower adjusted net income figure of $0.15 per share.
In the company's update, it cited better-than-expected sales in its siding and trim products. It also said Azek, the exterior products company it acquired over the summer, contributed positively to its quarterly performance.
Official numbers to come next month
We'll get a sharper picture of James Hardie's performance on Nov. 19, when the company is slated to publish its audited second-quarter results. Regardless, that better-than-expected performance certainly makes the stock worth watching, particularly for investors bullish on the future of home construction in the U.S.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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