Griffon Corporation Reports Strong Fiscal 2024 Second Quarter Earnings Beat
NEW YORK – Griffon Corporation (NYSE: NYSE:), a diversified management and holding company, has exceeded analyst expectations with its recent fiscal 2024 second-quarter results. The company reported adjusted earnings per share (EPS) of $1.35, surpassing the consensus estimate of $0.84. Additionally, Griffon’s revenue for the quarter came in at $672.9 million, beating analyst forecasts of $625.22 million.
Following the announcement, shares of Griffon rose more than 3% in premarket trading on Wednesday, indicating investor confidence in the company’s performance.
Griffon’s strong showing in the second quarter represents a significant improvement over the prior year’s results. The company reported a net income of $64.1 million, or $1.28 per share, a notable contrast to the previous year’s net loss of $62.3 million. Adjusted net income for the current quarter was $67.5 million, compared to $66.9 million in the same period last year, resulting in an increase in adjusted EPS from $1.21 to $1.35 year-over-year.
Ronald J. Kramer, Chairman and CEO of Griffon Corporation, attributed the successful quarter to the strong residential volume in the company’s Home and Building Products (HBP) segment. He also highlighted improved profitability in the Consumer and Professional Products (CPP) segment following the closure of U.S. facilities.
Looking ahead, Kramer expressed confidence in achieving a 15% segment EBITDA margin for CPP in the long term. As a result of the strong performance in the first half of the year and optimistic outlook for the remainder of 2024, Griffon has raised its full-year segment EBITDA guidance to $555 million from $525 million.
Despite a 5% decrease in second-quarter revenue compared to the previous year, Griffon remains resilient. The company’s adjusted EBITDA for the quarter was $134.2 million, only a slight 2% decrease from the prior year.
Griffon Corporation demonstrated its commitment to growth and shareholder value by repurchasing over 1.8 million shares during the second quarter. The company is also expanding CPP’s global sourcing strategy to enhance EBITDA margins and improve free cash flow, with completion expected by the end of calendar 2024.
With a solid financial position, including cash and equivalents of $123.0 million and a net debt to EBITDA leverage ratio of 2.8x, Griffon is well-positioned to navigate market conditions and capitalize on opportunities.
As investors and analysts monitor Griffon’s progress, the company’s strategic initiatives and market activities will be under close scrutiny. Griffon Corporation’s continued focus on growth and profitability sets a positive trajectory for the future.