Headwaters Inc (NYSE:HW) Gets Upgraded
General building and specialized lighting equipment manufacturer Headwaters Inc (NYSE:HW) reported strong first quarter 2014 operational results on 4th February which exceeded analyst expectations. It reported earnings per share of $0.05 which was well above $0.02 loss, that the street expected from the Utah based lighting solutions provider. Revenue for the quarter came in at $165.6 million which is 10.7 percent above 1Q13 and significantly higher than the $159.6 million that the analysts had estimated. It reported total revenue of $166 Million and income of $8 million and an adjusted EBITDA of $24 million.
On the back of strong results, the share price of the stock posted a huge 20.25 percent increase in its market valuation during trading on 4th February. Rating agency Canaccord Genuity upgraded the stock on 5th February and pegged the Price Target on the stock to $15 percent, considering the huge momentum the stock has built up.
Kirk A. Benson, Chairman and Chief Executive Officer of Headwaters Inc (NYSE:HW) has been quoted to have credited the huge build up in the top line growth to the successful acquisitions. He said that, “Our acquisitions were both positive, they provided incremental growth to very strong organic activity. Revenue in our trim product line, which we have now owned for over a year, grew 11% year-over-year, and we have increased margins in the trim board product line substantially through cost savings, and increased revenue and the December quarter was ahead of plan.
Upped Its 2014 Outlook
Stressing that rationalizing of cost structure and massive expansion in the distribution as key focus areas for the 2014 operations, the management of Headwaters Inc (NYSE:HW) anticipates solid growth this year. It has raised its 2014 forecast of adjusted EBIDTA to come in between $130 million and $145 million from the previously forecasted income range of $125 million to $140 million.