Overview

• U.S. insulation installer's Q1 revenue fell 3.5% yr/yr, missing analyst expectations

• Adjusted EPS declined from prior year as macro uncertainty and weather weighed on results

• Company raised quarterly dividend by over 5% and repurchased $25.4 mln in shares

Outlook

• Company expects near-term challenges in U.S. residential construction to continue

• Company says commercial end market continues to show strength

• Company notes increased uncertainty in U.S. consumer sentiment and new home sales activity

Result Drivers

• WEAK RESIDENTIAL MARKET - Co said residential same branch sales within Installation segment fell 11.2%, citing challenging weather and macro uncertainty affecting U.S. consumer sentiment and new home sales

• COMMERCIAL STRENGTH - Commercial installation sales grew double digits, with heavy commercial sales up over 20% and light commercial boosted by acquisitions

• HIGHER EXPENSES - Gross profit margin was pressured by higher vehicle-related expenses and increased medical and general liability insurance costs

Company press release: ID:nBw2VWMMwa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Miss	$660.5 mln	$668.66 mln (14 Analysts)
Q1 Net Income		$34.8 mln
Q1 Gross Profit		$212.3 mln
Q1 Operating Income		$57.6 mln
Q1 Pretax Profit		$47.1 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 11 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the construction & engineering peer group is "buy."

• Wall Street's median 12-month price target for Installed Building Products Inc is $300.00, about 0.2% above its May 6 closing price of $299.47

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 27 three months ago

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