James Hardie leads ASX 200 gains after Q2 trading update
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More news: James Hardie shares rocketed at the open after the troubled building products group's preliminary Q2 figures beat market forecasts.
Shares were up 9.1% to $33 at 11am AEDT, having dropped 39% over the last 12 months.
UBS analyst Nathan Reilly said James Hardie's projected earnings per share of 26 cents to 27 cents was 77% ahead of prior guidance, likely due to lower taxes.
Adjusted EBITDA of USD326 million ($496 million) to USD331 million was 19% above guidance, likely due to better sales and margin compared to consensus estimates.
James Hardie shares closed 8% higher in New York after the announcement.
James Hardie shares surge in New York on preliminary Q2 results
The news: James Hardie's NYSE-listed shares surged overnight as the building products group released preliminary second-quarter results that topped market expectations.
The numbers: James Hardie expects Q2 net sales of USD1.29 billion ($1.96 billion) to USD1.30 billion, down from USD1.95 billion in the prior corresponding period.
Adjusted net income is set to land between USD151 million to USD157 million, compared to USD157 million a year earlier.
Adjusted EBITDA is expected to be between USD326 million and USD331 million, up from USD263 million.
The context: James Hardie said its siding and trim segment exceeded expectations during the second-quarter period, with organic net sales falling by low single digits versus the prior-year period.
The company also said its recently acquired outdoor decking business AZEK "performed well" in the second quarter, with mid-single digit growth in both net sales and sell-through for its deck, rail and accessories segment compared to the prior year.
James Hardie's NYSE-listed shares surged 8.1% overnight. The group's ASX-listed shares have failed to recover since plunging 28% in a single session in August, after releasing a disappointing first-quarter result and full-year outlook.
What they said: "Even as single-family new construction remains challenging, our customers' commitment to ensuring the availability of our products demonstrates the importance of our brand and strong partnerships," said James Hardie CEO Aaron Erter.
"We are encouraged by our second quarter results and believe the outlook for siding & trim has modestly improved."
The sources: ASX, UBS research
