Yahoo Finance PGT Innovations (PGTI) Acquires Remaining 25% Stake in Eco
PGT Innovations PGTI acquired the remaining ownership in Eco Enterprises, LLC (Eco). This will help the company to diversify and bolster product lines to provide opportunities in residential and commercial markets.
Shares of the company gained 1.7% during the trading session and 0.4% in the after-hour trading session on Jun 5.
In 2021, PGT Innovations bought 75% stake in Eco, aiming to boost revenues, expand margins and strengthen the supply chain by adding glass production capacity. Notably, Eco is a leading brand of aluminum, impact-resistant windows and doors, mainly serving the South Florida region. It has manufacturing and glass processing facilities in Miami, FL.
The company remains committed to expanding its wide array of brands, thereby increasing product footprint, transforming manufacturing operations and growing in desirable markets and geographies.
Over the years, the company has acquired Western Window Systems, NewSouth Window Solutions, Anlin Windows & Doors and Martin Door.
Solid Business Momentum
Despite a challenging macro environment, PGT Innovations delivered strong first-quarter results backed by strength in the repair and remodel channels. It offset the softness in demand from reduced new construction activity.
Precisely, in its Southeast region, orders grew in double digits from the year-ago quarter in the first quarter of 2023, driven by strength in PGT Innovations and Eco brands.
PGT Innovations has rallied 50.5% this year, outperforming the Zacks Building Products - Miscellaneous industry, the Zacks Construction and S&P 500 index’s 15%, 16.1% and 12.5% rise, respectively.
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Driven by solid first-quarter performance and a growing order backlog, the company is well-poised for 2023. It expects second-quarter 2023 net sales in the range of $380 million-$400 million and adjusted EBITDA in the range of $70 million-$75 million.
Over the past 60 days, earnings estimates have increased to 60 cents per share for the second quarter of 2023 from 57 cents and to $1.95 per share from $1.76 for 2023.
Zacks Rank & Other Key Picks
Currently, PGTI sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the Zacks Construction sector are Willdan Group, Inc. WLDN, Sterling Infrastructure, Inc. STRL and Howmet Aerospace Inc. HWM.
Willdan Group, presently sporting a Zacks Rank #1, is a nationwide provider of professional, technical and consulting services to utilities, government agencies and private industry. You can see the complete list of today’s Zacks #1 Rank stocks here.
WLDN’s expected earnings growth rate for 2023 is 39.8%.
Sterling, currently carrying a Zacks Rank #2 (Buy), provides transportation, e-infrastructure and building solutions.
STRL’s expected earnings growth rate for 2023 is 11.4%.
Howmet, presently holding a Zacks Rank #2, is a global manufacturer of engineered products serving the aerospace, defense and commercial transportation industries. The company is expected to benefit from higher aircraft production rates and ease of supply chains in the transportation market. Importantly, share gains in the titanium aerospace market are expected to act as a major growth tailwind.
HWM’s earnings for 2023 are expected to grow 20.7%.
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