Latest news with #CSWI
Yahoo
27-05-2025
- Business
- Yahoo
CSW Industrials (CSWI) Moves to Buy: Rationale Behind the Upgrade
CSW Industrials (CSWI) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements. Therefore, the Zacks rating upgrade for CSW Industrials basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price. The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock. Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for CSW Industrials imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher. As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>. This industrial products and coatings maker is expected to earn $9.60 per share for the fiscal year ending March 2026, which represents a year-over-year change of 14.2%. Analysts have been steadily raising their estimates for CSW Industrials. Over the past three months, the Zacks Consensus Estimate for the company has increased 0.7%. Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term. You can learn more about the Zacks Rank here >>> The upgrade of CSW Industrials to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CSW Industrials, Inc. (CSWI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
22-05-2025
- Business
- Yahoo
CSW (NASDAQ:CSWI) Reports Sales Below Analyst Estimates In Q1 Earnings
Industrial products company CSW (NASDAQ:CSWI) fell short of the market's revenue expectations in Q1 CY2025, but sales rose 9.3% year on year to $230.5 million. Its non-GAAP profit of $2.24 per share was 1.1% above analysts' consensus estimates. Is now the time to buy CSW? Find out in our full research report. Revenue: $230.5 million vs analyst estimates of $232.8 million (9.3% year-on-year growth, 1% miss) Adjusted EPS: $2.24 vs analyst estimates of $2.22 (1.1% beat) Adjusted EBITDA: $59.76 million vs analyst estimates of $60.37 million (25.9% margin, 1% miss) Operating Margin: 19.5%, down from 22% in the same quarter last year Free Cash Flow Margin: 9.9%, up from 8.3% in the same quarter last year Market Capitalization: $5.28 billion "Total revenue increased 10.8% to $878.3 million, of which $47.5 million, or 6.0%, was inorganic growth from recent acquisitions, and 4.8%, or $37.9 million was organic growth. Contractor Solutions delivered organic revenue growth of 6.2% during the fiscal full year. Net income attributable to CSWI of $136.7 million, or $137.2 million adjusted, increased 25.7% as compared to $109.1 million. EPS of $8.38, or $8.41 adjusted, improved 20.0% compared to $7.01. Adjusted EBITDA increased 13.9% to $227.9 million, including margin expansion of 70 bps to 25.9%. Invested $84.7 million in acquisitions of PSP Products and PF Waterworks and $16.3 million in organic capital expenditures, while returning total cash of $32.9 million to shareholders through share repurchases of $18.3 million and dividends of $14.6 million. Subsequent to fiscal year-end, announced transfer of listing of common stock to the New York Stock Exchange beginning June 9, 2025, and change in ticker symbol to CSW" Comments from the Chairman, President, and Chief Executive Officer With over two centuries of combined operations manufacturing and supplying, CSW (NASDAQ:CSWI) offers special chemicals, coatings, sealants, and lubricants for various industries. A company's long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, CSW grew its sales at an incredible 17.9% compounded annual growth rate. Its growth surpassed the average industrials company and shows its offerings resonate with customers, a great starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. CSW's annualized revenue growth of 7.7% over the last two years is below its five-year trend, but we still think the results were respectable. This quarter, CSW's revenue grew by 9.3% year on year to $230.5 million, missing Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 12.6% over the next 12 months, an improvement versus the last two years. This projection is noteworthy and indicates its newer products and services will spur better top-line performance. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development. CSW has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 18.7%. This result isn't surprising as its high gross margin gives it a favorable starting point. Analyzing the trend in its profitability, CSW's operating margin rose by 3.9 percentage points over the last five years, as its sales growth gave it operating leverage. In Q1, CSW generated an operating profit margin of 19.5%, down 2.5 percentage points year on year. Since CSW's operating margin decreased more than its gross margin, we can assume it was less efficient because expenses such as marketing, R&D, and administrative overhead increased. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. CSW's EPS grew at an astounding 24.5% compounded annual growth rate over the last five years, higher than its 17.9% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. We can take a deeper look into CSW's earnings to better understand the drivers of its performance. As we mentioned earlier, CSW's operating margin declined this quarter but expanded by 3.9 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; taxes and interest expenses can also affect EPS but don't tell us as much about a company's fundamentals. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For CSW, its two-year annual EPS growth of 17.6% was lower than its five-year trend. We still think its growth was good and hope it can accelerate in the future. In Q1, CSW reported EPS at $2.24, up from $2.04 in the same quarter last year. This print beat analysts' estimates by 1.1%. Over the next 12 months, Wall Street expects CSW's full-year EPS of $8.57 to grow 11%. Revenue missed slightly, but EPS beat slightly. Overall, we'd call this quarter fairly online, neither great nor terrible. The stock remained flat at $312.45 immediately following the results. CSW's latest earnings report disappointed. One quarter doesn't define a company's quality, so let's explore whether the stock is a buy at the current price. If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
22-05-2025
- Business
- Yahoo
CSW Industrials: Fiscal Q4 Earnings Snapshot
DALLAS (AP) — DALLAS (AP) — CSW Industrials Inc. (CSWI) on Thursday reported profit of $35.1 million in its fiscal fourth quarter. The Dallas-based company said it had profit of $2.08 per share. Earnings, adjusted for non-recurring costs and costs related to mergers and acquisitions, were $2.24 per share. The industrial products and coatings maker posted revenue of $230.5 million in the period. For the year, the company reported profit of $136.7 million, or $8.38 per share. Revenue was reported as $878.3 million. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on CSWI at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-05-2025
- Business
- Yahoo
CSW Industrials (CSWI) Beats Q4 Earnings Estimates
CSW Industrials (CSWI) came out with quarterly earnings of $2.24 per share, beating the Zacks Consensus Estimate of $2.23 per share. This compares to earnings of $2.04 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 0.45%. A quarter ago, it was expected that this industrial products and coatings maker would post earnings of $1.29 per share when it actually produced earnings of $1.48, delivering a surprise of 14.73%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. CSW Industrials , which belongs to the Zacks Chemical - Specialty industry, posted revenues of $230.55 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.63%. This compares to year-ago revenues of $210.86 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. CSW Industrials shares have lost about 10.9% since the beginning of the year versus the S&P 500's decline of -0.6%. While CSW Industrials has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for CSW Industrials: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $2.83 on $251 million in revenues for the coming quarter and $9.45 on $953 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Chemical - Specialty is currently in the bottom 43% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Basic Materials sector, Commercial Metals (CMC), has yet to report results for the quarter ended May 2025. This manufacturer and recycler of steel and metal products is expected to post quarterly earnings of $0.71 per share in its upcoming report, which represents a year-over-year change of -30.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Commercial Metals' revenues are expected to be $1.98 billion, down 4.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CSW Industrials, Inc. (CSWI) : Free Stock Analysis Report Commercial Metals Company (CMC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Washington Post
22-05-2025
- Business
- Washington Post
CSW Industrials: Fiscal Q4 Earnings Snapshot
DALLAS — DALLAS — CSW Industrials Inc. (CSWI) on Thursday reported profit of $35.1 million in its fiscal fourth quarter. The Dallas-based company said it had profit of $2.08 per share. Earnings, adjusted for non-recurring costs and costs related to mergers and acquisitions, were $2.24 per share. The industrial products and coatings maker posted revenue of $230.5 million in the period.
