Overview

• US building products maker's Q1 revenue fell 10% yr/yr but beat analyst expectations

• Adjusted EPS for Q1 declined 59% yr/yr but beat analyst expectations

• Company completed sale of glass reinforcements business to focus on core portfolio

Outlook

• Owens Corning expects Q2 revenue from continuing operations of $2.6 bln to $2.7 bln

• Company anticipates Q2 adjusted EBITDA margin from continuing operations of 20% to 22%

• Owens Corning expects $60 mln incremental inflationary costs in Q2 due to Iran conflict

Result Drivers

• MARKET CONDITIONS - Co said Q1 performance was driven by solid commercial and operational execution despite challenging market environment

• PORTFOLIO SHIFT - Completion of glass reinforcements business sale positions co to focus on core building products and unlock cost efficiencies

• OPERATIONAL DISCIPLINE - Co emphasized focus on operational discipline and integrated execution to support margins and future growth

Company press release: ID:nBw1v7x1pa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy"

• Wall Street's median 12-month price target for Owens Corning is $134.50, about 9.4% above its May 5 closing price of $122.90

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

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