GFF Earnings Prediction
The chart below shows how GFF performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GFF sees a -1.89% change in stock price 10 days leading up to the earnings, and a +4.29% change 10 days following the report. On the earnings day itself, the stock moves by +1.14%. This data can give you a slight idea of what to expect for the next quarter's release.
GFF Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
632.37M
-1.68%
-4.14%
Gross Margin
41.79%
8.26%
1.90%
Operating Margin
17.73%
18.52%
-2.10%
Net Margin
11.20%
70.73%
18.27%
EPS
1.49
81.71%
15.50%
No Data Available
GFF Earnings Analysis
Griffon Corp Corporation (GFF.N) Earnings Conference Call
Positive
Strong Free Cash Flow: Robust free cash flow of $143 million was generated in Q1, indicating strong financial health and operational efficiency.
EBITDA Growth Analysis: Home and Building Products (HBP) EBITDA increased by 2% year-over-year, supported by reduced material costs despite increased labor and distribution expenses.
CPP Adjusted EBITDA Increase: Consumer and Professional Products (CPP) adjusted EBITDA rose by $13 million to $18 million, reflecting successful global sourcing initiatives and increased volume in Australia.
Stock Repurchase Strategy: A total of $42 million in stock was repurchased during the quarter, reducing outstanding shares by 16.7% since April 2023, demonstrating strong capital allocation strategy.
Consistent Dividend Growth: The quarterly dividend of $0.18 per share marks the 54th consecutive dividend payment, with an annualized growth rate of over 18% since 2012, showcasing commitment to returning value to shareholders.
Negative
Revenue Decline Analysis: First quarter revenue of $632,000,000 decreased 2% compared to the prior year quarter, indicating a decline in overall sales performance.
Revenue Decline in Products: Consumer and professional products revenue decreased 4% from the prior year quarter to $237,000,000 due to decreased volume driven by reduced consumer demand in North America and the United Kingdom.
SG&A Expense Analysis: First quarter GAAP selling, general and administrative expenses were $152,000,000, consistent with the prior year, but SG&A as a percentage of revenue increased to 23.8% from 22.9%, indicating rising operational costs relative to sales.
Net Debt and Leverage Ratio: Net debt stood at $1,300,000,000 with a net debt to EBITDA leverage of 2.4 times, reflecting a high level of indebtedness despite a slight improvement from 2.5 times in the prior year quarter.
North America Sales Weakness: The company anticipates continued weakness in North America for the first half of 2025, which is expected to negatively impact sales in the consumer and professional products segment.
GFF FAQs
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GFF Earning Call Sentiment
Earnings call transcript: Griffon Q1 2025 beats EPS estimates, stock rises
GFF.N
-1.14%Positive
The earnings call reflects a mixed sentiment with positive aspects like increased EBITDA, strong share repurchase activity, and consistent dividends. However, there are concerns over declining revenues in key segments, vague responses in the Q&A, and a neutral revenue guidance for 2025. The market cap suggests moderate stock reaction, and the sentiment is balanced by the strategic initiatives and financial health, resulting in a neutral stock price prediction.
