Zacks Investment Research downgraded shares of Gibraltar Industries Inc. (ROCK) from NEUTRAL to UNDERPERFORM on June 21, 2013, with a target price of $14.00.
We downgrade our recommendation on Gibraltar to Underperform from Neutral, based on its dismal first quarter 2013 results. Earnings per share for the reported quarter dropped 55.6% year over year to $0.04, reflecting a weather affected demand and lower prices. Gibraltar's gross as well as operating margins decreased year over year in the reported quarter. Moreover, Gibraltar's dependence on others' spending also makes it prone to sales fluctuations, strengthened by the fact that the company lacks long term relationships with its customers. Also, Gibraltar's presence in various regions around the globe makes it susceptible to foreign currency risks, as well as economic and political risks of the nation. Moreover, a negative trend in the global economy forces down consumer spending, leading to a loss of business for the company.
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