On Sep 24, 2014, we issued an updated research report on Gibraltar Industries Inc. (ROCK). The company is one of the leaders in providing products ranging from ventilation and expanded metal to mail storage solutions and rain dispersion products to the industrial and buildings markets.
The company’s solid product portfolio satisfies the demands of a diversified client base which include wholesalers, retail home centers, residential, commercial and transportation contractors, among others. Gibraltar Industries constantly works upon innovating and improving its product offerings in order to expand its market share.
In addition to innovation, Gibraltar Industries relies on strategic acquisitions to augment its businesses. In Sep 2013, the company acquired a product line for a cash consideration of $5 million. Further, acquisitions accounted for nearly $52.4 million of incremental revenues in 2013. Significant cash availability of the company will support future acquisitions as well as its reinvestment in the business for organic growth.
Also, Gibraltar Industries has lately been undertaking significant restructuring initiatives, which has resulted in lower manufacturing costs and improved manufacturing efficiency. Such efforts by the company will likely lead to margin expansion and boost the bottom line in the upcoming quarters. Moreover, recovery in the global construction industry and an increase in residential repair and remodeling activities will prove beneficial for the company.
The Zacks Consensus Estimate for Gibraltar Industries is pegged at 53 cents per share for 2014 and at 83 cents per share for 2015, reflecting year-over-year decline of 23.2% and growth of 56.6%, respectively.
With a market capitalization of $454.5 million, Gibraltar Industries currently carries a Zacks Rank #2 (Buy). Other stocks worth a look in the industry include PGT, Inc. (PGTI), UCP, Inc. (UCP) and United Rentals, Inc. (URI). All these stocks hold a Zacks Rank #2 (Buy).
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