This building products company beat analysts’ estimates by $0.12 last quarter, and 21 analysts have increased their forecasts in the past 30 days.
Owens Corning (OC)
From Dow Theory Forecasts
Owens Corning (OC), a maker of shingles, insulation, and composite materials, posted an operating profit margin of 19.6% over the last 12 months, up from 17.1% a year earlier and 13.6% a year before that.
Both gross margins (reflecting profit after production costs) and operating margins (profit after both production and operating costs) have trended higher, reflecting cost controls and improved manufacturing efficiency.
In the June quarter, sales rose 3% and per-share profits dipped 7% to $1.20 per share, 11% above the consensus.
Owens Corning enjoys strong pricing power and expects profit growth to accelerate in the second half, helped by a price increase. Owens is also a Long-Term Buy
Richard Moroney, CFA, Dow Theory Forecasts, www.dowtheory.com, 800-233-5922, July 31, 2017