James Hardie shares drop on 'uncertain' Q4 outlook
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More news: James Hardie shares sank 5.1% in early trading after reporting an "uncertain" outlook for the fourth quarter. Shares were down to $56.18 at 11:00am AEDT, despite the construction materials company posting a 39% rise in adjusted net income for the third quarter.
What they said: UBS analysts said the company's Q4 guidance was lower than expected at US$165 million ($252.7 million) to $185 million compared to the consensus US$188 million.
"While the 4Q is below our expectations we remain optimistic around upgrades to FY25 given our view the vol outlook is conservative, pricing continues to flow through and James Hardie's margin," they said.
James Hardie reports positive Q3, warns of 'uncertain' outlook
The news: Building materials manufacturer James Hardie posted a record result for the third quarter, but warned the global housing market "continues to remain uncertain".
The numbers: James Hardie's quarterly adjusted net income rose 39% to USD179.9 million ($275.46). Its nine month operating cash flow was up 73% to USD749.5 million and its fourth quarter net income guidance is set to USDUS165 million to USD185 million.
Global adjusted EBITDA, taking into account the group's North America, Asia Pacific and Europe segments, was USD280.4 million for the quarter — up 18% compared to the prior corresponding period.
The context: The Dublin-based company is dual-listed on the ASX and New York Stock Exchange, and said the outlook for housing markets it participates in globally continues to remain uncertain. James Hardie's largest market, North America, is expected to report between a decrease of 4% and a growth of 6% in calendar year 2024.
What they said: James Hardie CEO Aaron Erter said: "Our last four quarterly results have demonstrated that we are accelerating through this cycle and taking share. We have a superior value proposition that helps our customers grow and be successful".
The source: ASX announcement
