Griffon Gears Up to Report Q3 Earnings: What to Expect

Griffon Corporation GFF is expected to release third-quarter fiscal 2024 (ended Jun 30, 2024) results on Aug 7, before market open.

The company's earnings beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 33.5%. In the last reported quarter, its earnings of $1.35 per share surpassed the Zacks Consensus Estimate of 94 cents by 43.6%.

The consensus estimate for revenues is pegged at $711 million, indicating an increase of 4.1% from the year-ago quarter's reported number. The consensus estimate for earnings of $1.46 per share indicates an increase of 13.2% from the year-earlier level.

Let's see how things have shaped up for Griffon this earnings season.

Factors Likely to Influence Results

Griffon's fiscal third-quarter performance is likely to have been aided by increased demand for housing, higher repair and remodel activities and solid commercial construction demand.

The Home and Building Products ("HBP") segment is expected to witness higher revenues on the back of improved customer orders, and favorable pricing and mix in residential markets. The Zacks Consensus Estimate for the HBP segment's revenues is pegged at $413 million, which indicates an increase of 3% from the year-ago reported number.

The Consumer and Professional Products ("CPP") segment has been undergoing restructuring changes for the expansion of its global sourcing strategy to include material handling, long-handled tools, and wood storage and organization product lines. With the transition of these product lines to an asset-light structure, CPP's operations are expected to have benefited from a more flexible and cost-effective sourcing model.

Increased demand for products in Australia and elevated customer inventory levels are also likely to have driven segmental revenues. However, the segment's performance is likely to have been weak due to lower volume on account of soft consumer demand in North America and the United Kingdom.

Given GFF's substantial international operations, foreign-currency woes are likely to have hurt its top line. Also, high costs associated with restructuring actions are likely to have dented its bottom line.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for GFF this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.

Earnings ESP: GFF has an Earnings ESP of 0.00% as both the Most Accurate Estimate and Zacks Consensus Estimate are pegged at $1.46 per share.

Zacks Rank: GFF presently carries a Zacks Rank of 3.

Stocks to Consider

Here are some companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.

Atkore Inc. ATKR has an Earnings ESP of + 0.62% and a Zacks Rank of 3 at present.

The company is scheduled to release second-quarter results on Aug 6. Atkore's earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 15.4%.

Emerson Electric Co. EMR has an Earnings ESP of +0.14% and a Zacks Rank of 2. The company is slated to release fiscal third-quarter (ended June 2024) results on Aug 7.

Emerson's earnings have surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing the mark in one, the average surprise being 10.7%.

Deere & Company DE has an Earnings ESP of +0.18% and a Zacks Rank of 3 at present. It is slated to release fiscal third-quarter (ended July 2024) results on Aug 15.

Deere's earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 16%.

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