Griffon Earnings Preview

Motley Fool Staff
Updated

Griffon (NYS: GFF) came in under analyst's estimates last quarter, but now have a chance to fix things this quarter. The company will unveil its latest earnings on Tuesday, August 2. Griffon is a holding company, which consists of three business segments: Electronic Information and Communication Systems; Garage Doors, and Specialty Plastic Films.

What analysts say:

  • Buy, sell, or hold?: Analysts are very bullish on this stock, unanimously backing it as a buy. Analysts like Griffon better than competitor Headwaters overall. Two out of four analysts rate Headwaters a buy compared to three of three for Griffon. Analysts haven't adjusted their rating of Griffon for the past three months.

  • Revenue Forecasts: On average, analysts predict $490.4 million in revenue this quarter. That would represent a rise of 50% from the year-ago quarter.

  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.20 per share. Estimates range from $0.16 to $0.25.

What our community says:
CAPS All-Stars are solidly backing the stock with 83.3% giving it an "outperform" rating. The majority of the Fools are in agreement with the All-Stars as 75% give it an "outperform" rating. Fools are keen on Griffon, though the message boards have been quiet lately with only 63 posts in the past 30 days. Despite the majority sentiment in favor of Griffon, the stock has a middling CAPS rating of three out of five stars.

Management:
Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q2

Q1

Q4

Q3

Gross Margin

21.2%

21.2%

21.4%

22.7%

Operating Margin

3.3%

1.5%

0.1%

3.4%

Net Margin

-2.9%

-0.4%

-0.5%

1.5%

For all our Griffon-specific analysis, including earnings and beyond, add Griffon to My Watchlist.

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At the time thisarticle was published

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