Gibraltar Industries (NASDAQ: ROCK) reported Q4 EPS of $0.47, $0.07 better than the analyst estimate of $0.40. Revenue for the quarter came in at $240.9 million versus the consensus estimate of $244.45 million.

Management Comments

“We closed the fourth year of our transformation of Gibraltar delivering fourth-quarter revenues in line with our expectations and GAAP and adjusted earnings that exceeded our guidance,” said Vice Chairman Frank Heard. “By executing on our four-pillar strategy, we recovered increased material costs, benefitted from higher-margin innovative products and drove profitable growth in the Industrial & Infrastructure segment.

“For the fourth year in a row we delivered on our promise of making more money at a higher rate of return with a more efficient use of capital. For the full year, revenues of $1 billion were in line with our guidance, while GAAP earnings of $1.96 and adjusted earnings of $2.14 exceeded our expectations. Furthermore, we managed price cost relationships well during a period of significant material cost volatility, continued to benefit from 80/20 simplification initiatives, increased the percentage of higher-margin patented products, and positioned the Company for the next step in its transformation by repaying our outstanding notes and bringing on a new CEO with proven expertise in achieving organic and M&A growth.

“Bill comes to Gibraltar with significant experience leading complex businesses at Fortune 500 global industrial companies, and valuable expertise in driving organic growth accelerated by strategic acquisitions as well as proficiency in manufacturing operations. He is uniquely qualified to lead Gibraltar in its next phase of growth,” concluded Heard.

“My focus will be on accelerating organic growth through innovative products and strategic acquisitions, while enhancing our 80/20 simplification strategy,” said President and Chief Executive Officer William Bosway. “The Company has achieved tremendous progress in the past four years of transformation, and those successes have created even greater opportunities ahead. Through executing our four-pillar strategy, our businesses have more upside potential and little downside risk. Now, with the recent repayment of our notes, we enter year five of Gibraltar’s transformation with a strong platform to accelerate growth through innovation and acquisitions and create long-term value for our shareholders.”

Business Outlook

“We enter 2019 with confidence in the end markets we target across our businesses but are cautious about the general economy and continued volatility in material costs,” said Bosway. “Our plan is to accelerate innovative product development, continue to drive 80/20, and seek acquisitions in attractive end markets. At the end of the year, we expect to deliver increased profits and make excellent progress in establishing a robust platform for sustainable organic growth.”

GUIDANCE:

Gibraltar Industries sees FY2019 EPS of $2.40-$2.55, versus the consensus of $2.40. Gibraltar Industries sees FY2019 revenue of $1 billion, versus the consensus of $1.05 billion.

Gibraltar Industries sees Q1 2019 EPS of $0.27-$0.32, versus the consensus of $0.32. Gibraltar Industries sees Q1 2019 revenue of $218-224 million, versus the consensus of $224 million.

For earnings history and earnings-related data on Gibraltar Industries (ROCK) click here.