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Gibraltar (ROCK) Raises EPS Outlook on Better Prospects


We issued an updated research report on the premium steel & iron firm, Gibraltar Industries, Inc. ROCK, on Sep 20, 2016. The company enjoys a leading position in the industry, supported by its diversified product offering.

Bullish Factors

Gibraltar Industries has been boosting its business on the back of its unique value-creation strategy. In sync with this strategy, the company is improving its operational performance via better economic pricing, reduction in overhead expenses and consolidation of important facilities. Moreover, the RBI acquisition (Jun 2015) is expected to bolster the company’s revenues and margins in the near term. Also, the unique 80/20 simplification program is likely to drive Gibraltar Industries’ commercial growth and profitability.

Based on these buoyant aspects, the company has revised its full-year 2016 adjusted earnings guidance to the range of $1.37-$1.47 per share from the previously estimated $1.30–$1.40 per share.

Few Hints of Issues

We believe this Zacks Rank #1 (Strong Buy) stock would continue to improve its top- and bottom-line results in the quarters ahead. However, certain industry-specific negativities might affect Gibraltar Industries’ commercial prospects. For instance, severe rivalry exposes the company to risks of market share loss as well as pricing wars. Further, the firm’s international operations might face an adverse impact from unfavorable foreign currency movements.

Other Stocks to Consider

Gibraltar Industries currently sports a Zacks Rank #1. Some other favorably placed stocks within the industry include Argan, Inc. AGX, CRH plc CRH and Caesarstone Ltd. CSTE. While both Argan, Inc. and CRH plc sport a Zacks Rank #1, Caesarstone Ltd. presently holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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