Glass and windows manufacturer Tecnoglass (NYSE:TGLS) will be reporting results this Thursday before market hours. Here’s what to look for.
Tecnoglass beat analysts’ revenue expectations last quarter, reporting revenues of $245.3 million, up 2.4% year on year. It was a softer quarter for the company, with full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ adjusted operating income estimates.
Is Tecnoglass a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Tecnoglass’s revenue to grow 9.1% year on year, slowing from the 15.4% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Tecnoglass has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Tecnoglass’s peers in the building materials segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Vulcan Materials delivered year-on-year revenue growth of 7.4%, beating analysts’ expectations by 5.8%, and Valmont reported revenues up 6.2%, topping estimates by 3%. Vulcan Materials traded up 3.5% following the results while Valmont was also up 13.9%.
Read our full analysis of Vulcan Materials’s results here and Valmont’s results here.
There has been positive sentiment among investors in the building materials segment, with share prices up 9.9% on average over the last month. Tecnoglass is down 2.7% during the same time and is heading into earnings with an average analyst price target of $57 (compared to the current share price of $42.52).
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