Hot Stock under Consideration: Owens Corning (NYSE: OC)

On Friday, Shares of Owens Corning (NYSE: OC) showed the bearish trend with a lower momentum of -0.22% to $44.35. The company traded total volume of 1,324,489 shares as contrast to its average volume of 1.71M shares. The company has a market value of $4.87B and about 109.72M shares outstanding.

Owens Corning (OC) recently stated consolidated net sales of $1.80B in third-quarter 2018, contrast with net sales of $1.70B in third-quarter 2017, a boost of 7%.

Third-quarter 2018 net earnings attributable to Owens Corning were $161.0M, or $1.45 per diluted share, contrast with $96.0M, or $0.85 per diluted share, during the comparable quarter in 2017. Third-quarter 2018 adjusted earnings were $171.0M, or $1.54 per diluted share, contrast with $141.0M, or $1.25 per diluted share, during the same period one year ago. (See Use of Non-GAAP Measures, See Table 3).

Stated earnings before interest and taxes (EBIT) for third-quarter 2018 were $259.0M, contrast with $227.0M during the same period in 2017. Adjusted EBIT in third-quarter 2018 was $267.0M, contrast with $239.0M in 2017.

Return of Capital Actions:

  • During third-quarter 2018, Owens Corning repurchased 1.70M shares of its common stock for $1000M. At the end of the quarter, 4.60M shares were available for repurchase under the current authorization. On September 20, 2018, the Owens Corning Board of Directors declared a quarterly cash dividend of $0.21 per common share. The dividend will be payable on November 2, 2018, to shareholders of record as of October 16, 2018.

2018 Outlook:

  • In Insulation, the company now anticipates to deliver EBIT growth of about $110.0M, down from $150.0M. The company continues to expect to achieve $120.0M of price. The primary driver of the downward revision in the outlook is related to weaker market expectations across geographies and product platforms.
  • The company now anticipates general corporate expenses to be between $125.0M and $130.0M in 2018, down from the previous estimate of between $135.0M and $140.0M. Capital additions in 2018 are expected to total about $500.0M. Interest expense is expected to be between $125.0M and $130.0M.
  • The company anticipates 2018 adjusted EBIT in line with last year’s performance of $855.0M, contrast with a formerly estimated range of $925.0M to $975.0M.

The Company offered net profit margin of 5.30% while its gross profit margin was 23.60%. ROE was recorded as 8.90% while beta factor was 1.19. The stock, as of recent close, has shown the weekly upbeat performance of 0.84% which was maintained at 0.84% in this year.

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