NCI Building's shares drop on weak 3Q results
HOUSTON (AP) — Shares of commercial-building manufacturer NCI Building Systems Inc. fell Wednesday after it reported disappointing earnings and revenue for the third quarter, citing the lack of a meaningful pick-up in demand amid a sluggish economy.
The company said it pared its net loss in the three months to July 28 to $12.2 million, or 19 cents per share, from a loss of $52.1 million, or $2.74 per share, in the comparable period a year ago.
Excluding the cost of extinguishing debt, adjusted earnings came to 2 cents per share, below the 5 cents per share expected by analysts polled by FactSet.
Revenue rose 6 percent to $317.2 million, short of the $350.9 million analysts were looking for.
Shares plunged $1.70, or 14.2 percent, to $10.30 in after-hours trading following the release of results Wednesday.
CEO Norman Chambers said in a statement that sales volume lagged internal expectations due to weak demand, especially in the agricultural market.
He said because of a decline in non-residential buildings being started over the first nine months of its fiscal year, there is unlikely to be enough of an uptick in the final quarter to show annual volume growth from a year ago.