NYSE$OC

Owens Corning Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Owens Corning reported first-quarter results, delivering net sales of $1.6 billion.

Owens Corning reported consolidated net sales of $1.6 billion, a decrease of 4% compared to 2019. The company's 2020 results included non-cash pre-tax impairment charges related to the Insulation business of $987 million. First-quarter 2020 adjusted earnings were $65 million, or $0.60 per diluted share, compared with $58 million, or $0.53 per diluted share, during the same period one year ago.

  • Company delivered strong results in a challenging environment.
  • Roofing produced $64 million of EBIT and maintained 12% EBIT margins.
  • Insulation delivered $39 million of EBIT and doubled EBIT margins to 6%.
  • Composites generated $44 million of EBIT and posted EBIT margins of 9%.

Headline financials

Total Revenue

$1.6B

Previous: $1.67B-4.0%
EPS (adj)

$0.60

Previous: $0.54+11.1%
Free Cash Flow

-$917M

Previous: $44M-2184.1%
Net Income

-$917M

Previous: $44M-2184.1%
Operating Income

-$870M

Previous: $116M-850.0%
Gross Profit

$306M

Previous: $325M-5.8%
Cash & Equivalents

$234M

Previous: $82M+185.4%
Total Assets

$9.15B

Previous: $10.3B-10.9%
Stock-Based Comp

$11M

Previous: $11M+0.0%

Revenue & EPS history

Owens Corning · Revenue · Quarterly

$1.6B

Q1 2020-4%vs Q1 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Owens Corning · $1.16B total across 2 segments · Q1 2020

  • Insulation
    $603M+2.0%
  • Roofing
    $555M-9.6%

Forward guidance

The company expects the COVID-19 pandemic will negatively impact the market outlook of its three businesses that was previously provided. The magnitude of the impact will depend on the depth and duration of the crisis, as well as the timing of the recovery in the markets served by the company. The company continues to focus on reducing costs, minimizing capital expenditures, and managing working capital.

Tailwinds

  • The company will continue to sustain strong conversion of adjusted earnings into free cash flow.

Headwinds

  • The key economic factors that continue to impact the company’s businesses are global industrial production, U.S. housing starts, and global commercial and industrial construction activity.
  • Interest expense is currently estimated to be between $120 million to $125 million, compared with its previous estimate of $115 million.
  • The company estimates an effective tax rate of 26% to 28%, and a cash tax rate of 10% to 12% on adjusted pre-tax earnings, which is due to the company’s foreign tax credit carryforwards.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.9%

Avg return

Earnings day

-1.1%

Avg return

5 days after

+0.5%

Avg return

30 days after

38%

26 / 68 earnings

Positive

+19.5%

Q3 2011

Best reaction

-13.9%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.1%-2.6%-3.1%
Q4 2025-2.3%-7.8%-17.4%
Q3 2025-9.5%-15.8%-7.4%
Q1 2025-8.5%+0.4%-5.1%
Q4 2024-1.6%-6.9%-10.7%
Q3 2024+2.7%+6.0%+10.6%
Q2 2024-6.3%-4.5%-3.3%
Q1 2024-1.5%+2.4%+8.2%
Q4 2023-3.3%-4.8%+8.7%
Q3 2023-7.7%-8.7%+7.9%
Q2 2023+6.3%+7.1%+3.6%
Q1 2023+4.0%+6.1%+9.9%
Q4 2022-1.7%-3.4%-13.2%
Q3 2022-6.7%-4.2%+1.8%
Q2 2022+8.7%+12.3%+3.1%
Q1 2022+6.7%+8.3%+13.0%
Q4 2021+5.8%+6.2%+6.3%
Q3 2021+3.3%+4.1%-3.4%
Q2 2021+4.5%+2.4%+6.9%
Q1 2021+1.3%+2.3%+9.8%
Q4 2020-2.2%-2.1%+8.0%
Q3 2020-2.3%-1.1%+7.9%
Q2 2020+0.0%+1.4%+12.9%
Q1 2020+8.1%+1.1%+30.9%
Q4 2019+6.1%-1.8%-50.5%
Q3 2019-2.7%-0.6%+6.1%
Q2 2019+7.6%+3.6%-0.7%
Q1 2019-9.6%-6.7%-10.2%
Q4 2018-6.9%-10.7%-16.5%
Q3 2018-4.5%-6.2%+8.0%
Q2 2018-7.1%-3.8%-12.1%
Q1 2018-11.8%-13.5%-14.9%
Q4 2017-2.5%-1.9%-11.0%
Q3 2017-2.0%+0.8%+8.4%
Q2 2017+6.0%+4.6%+9.4%
Q1 2017-2.3%-3.1%-0.9%
Q4 2016+2.7%+4.1%+11.0%
Q3 2016-3.0%-2.0%+7.9%
Q2 2016-1.6%-2.6%-1.9%
Q1 2016-9.0%
Q4 2015-1.7%
Q3 2015-0.7%
Q2 2015+2.6%
Q1 2015-3.9%
Q4 2014-2.7%
Q3 2014+3.1%
Q2 2014-4.5%
Q1 2014-4.8%
Q4 2013+8.4%
Q3 2013-4.9%
Q2 2013-1.4%
Q1 2013+6.3%
Q4 2012-10.7%
Q3 2012-4.3%
Q2 2012+5.2%
Q1 2012-0.2%
Q4 2011-4.4%
Q3 2011+19.5%
Q2 2011-13.9%
Q1 2010+2.4%
Q1 2011+2.0%
Q4 2008+10.7%
Q4 2010+10.7%
Q3 2010-3.0%
Q3 2009-3.0%
Q2 2009-8.1%
Q4 2009-8.1%
Q2 2010-8.1%

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