ROCK - Gibraltar Industries - Company Description
Gibraltar Industries, Inc. manufactures and distributes building products in North America, Europe, and Asia. It operates through three segments: Residential Products, Industrial and Infrastructure Products, and Renewable Energy and Conservation. The Residential Products segment offers roof and foundation ventilation products and accessories, such as solar powered units; postal and parcel storage products, including single mailboxes, cluster boxes for multi-unit housing, and package locker systems; roof edgings and flashings; soffits and trims; drywall corner beads; metal roofing products and accessories; rain dispersion products comprising gutters and accessories; and exterior retractable awnings. This segment also provides electronic parcel lockers, roof top safety kits, chimney caps, heat trace coils and exterior products, remote-controlled deck awnings for sun protection, and solar-powered ventilation products, as well as adhesive roofing application products. The Industrial and Infrastructure Products segment offers expanded and perforated metals used in walkways, catwalks, architectural facades, perimeter security barriers, shelving, and other applications; fiberglass grating used in high strength, light weight, low maintenance, corrosion resistance, and non-conductivity areas; and expansion joint systems, bearing assemblies, and pavement sealing systems used in bridges, elevated highways, airport runways, and rail crossings. This segment also provides architectural facades for buildings; and perimeter security barriers for protecting critical infrastructure. The Renewable Energy and Conservation segment designs and provides engineered solutions for solar racking systems and greenhouse structures. The company markets its products through sales personnel and outside sales representatives. Gibraltar Industries, Inc. was founded in 1993 and is headquartered in Buffalo, New York. Company description from FinViz.com.
Expected earnings February 16th.
ROCK reported Q3 earnings of 67 cents that rose 22% and beat estimates for 54 cents. This was even over their guidance of 58-65 cents. Revenue of $275 million was in line with estimates. They ended the quarter with $208 million in cash, up from $170 million. They guided for the full year for revenue of $960-$965 million and earnings of $1.60-$1.67.
Shares have been steadily rising since mid December and closed at an 8-month high on Friday. With the economy booming, construction of all kinds breaking out all over, this building products manufacture/supplier should continue to do very well.
I chose ROCK because of the positive chart, positive sector and inexpensive option premiums that do not require a mortgage loan to buy. They do not have LEAPS but the August call will work for our time frame. With the potential for a market decline over the summer we will probably be out of the position well before expiration.
Buy Aug $40 call, currently $3.00, initial stop loss $32.65.