Why Is Griffon (GFF) Up 2.1% Since Last Earnings Report?

It has been about a month since the last earnings report for Griffon (GFF). Shares have added about 2.1% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Griffon due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Griffon’s Q4 Earnings Top Estimates, Revenues Rise Y/YGriffon reported fourth-quarter fiscal 2024 (ended September 2024) adjusted earnings of $1.47 per share, which surpassed the Zacks Consensus Estimate of $1.21. The bottom line increased 23.5% year over year.Total revenues of $659.7 million surpassed the consensus estimate of $642 million and increased 3% year over year.Segmental DetailsHome and Building Products: Sales from the Home and Building Products segment (representing 61.6% of net revenues) were $406.6 million, up 3.2% year over year due to a favorable product mix of 2% and increased volume of 1%. The segment’s revenues were $1.6 billion in fiscal 2024, flat year over year.Consumer and Professional Products: The segment’s revenues (38.4%) summed $253.1 million, up 2% year over year driven by increased volume from Australia, inclusive of the Pope acquisition (3%). The segment’s revenues in fiscal 2024 declined 6% to $1.0 billion.Margin ProfileGriffon’s cost of sales increased 0.2% year over year to $396.2 million. Selling, general and administrative expenses decreased 3.5% year over year to $151.8 million.Total operating expenses declined 8.8% year over year to $151.8 million. The gross margin increased to 41.1% from 39.2% in the year-ago period.Balance Sheet & Cash FlowAt the end of the fourth quarter, Griffon had cash and cash equivalents of $114.4 million compared with $102.9 million at the end of fiscal 2023 (ended September 2023). Long-term debt, net of current maturities, was $1.52 billion at the end of the fourth quarter compared with $1.46 billion at fiscal 2023-end.In fiscal 2024, the company generated net cash of $380 million from operating activities compared with $431.8 million cash generated in the year-ago period.Free cash flow was $326.1 million in fiscal 2024 compared with $389.1 million cash flow in the prior-year period.OutlookGriffon expects fiscal 2025 revenues to be consistent with the revenues generated in fiscal 2024. Adjusted EBITDA is expected to be $575-$600 million.How Have Estimates Been Moving Since Then?It turns out, estimates review have trended downward during the past month.VGM ScoresAt this time, Griffon has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Griffon has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerGriffon belongs to the Zacks Diversified Operations industry. Another stock from the same industry, Markel Group (MKL), has gained 1.9% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.Markel Group reported revenues of $3.69 billion in the last reported quarter, representing a year-over-year change of +1.5%. EPS of $17.34 for the same period compares with $16.56 a year ago.For the current quarter, Markel Group is expected to post earnings of $19.42 per share, indicating a change of -65.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -4.1% over the last 30 days.Markel Group has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.Free Report: 5 Clean Energy Stocks with Massive UpsideEnergy is the backbone of our economy. It’s a multi-trillion dollar industry that has created some of the world’s largest and most profitable companies.Now state-of-the-art technology is paving the way for clean energy sources to overtake “old-fashioned” fossil fuels. Trillions of dollars are already pouring into clean energy initiatives, from solar power to hydrogen fuel cells.Emerging leaders from this space could be some of the most exciting stocks in your portfolio.Download Nuclear to Solar: 5 Stocks Powering the Future to see Zacks’ top picks free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Griffon Corporation (GFF): Free Stock Analysis Report Markel Group Inc. (MKL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks