Overview

* Owens Corning ( OC ) Q3 net sales fell 3% yr/yr, missing analyst expectations

* Adjusted EPS for Q3 missed analyst expectations

* Company recorded $780 mln impairment charge related to Doors business

Outlook

* Owens Corning ( OC ) expects Q4 revenue to be $2.1 bln to $2.2 bln

* Company anticipates Q4 adjusted EBITDA margin of 16% to 18%

* Company expects minimal Q4 tariff impact, reducing exposure to $10 mln

Result Drivers

* WEAK RESIDENTIAL DEMAND - Co cites weakening residential demand trends in the U.S. impacting volumes in repair and remodel and new construction product lines

* IMPAIRMENT CHARGE - Co recorded $780 mln non-cash impairment charge related to Doors business

* EFFICIENCY IMPROVEMENTS - Co highlights strategic choices and structural improvements leading to greater efficiency and performance

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Miss $2.68 $2.69

bln bln (17

Analysts

)

Q3 Miss $3.67 $3.70

Adjusted (17

EPS Analysts

)

Q3 EPS -$5.93

Q3 NET -$495

INCOME mln

Q3 Miss $638 mln $643.74

Adjusted mln (15

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the construction supplies & fixtures peer group is "buy"

* Wall Street's median 12-month price target for Owens Corning ( OC ) is $170.50, about 28% above its November 4 closing price of $122.72

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)