Let’s dig into the relative performance of Resideo (NYSE: REZI) and its peers as we unravel the now-completed Q3 building materials earnings season.

Traditionally, building materials companies have built competitive advantages with economies of scale, brand recognition, and strong relationships with builders and contractors. More recently, advances to address labor availability and job site productivity have spurred innovation. Additionally, companies in the space that can produce more energy-efficient materials have opportunities to take share. However, these companies are at the whim of construction volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates. Additionally, the costs of raw materials can be driven by a myriad of worldwide factors and greatly influence the profitability of building materials companies.

The 9 building materials stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 1% while next quarter’s revenue guidance was 1.1% below.

While some building materials stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.2% since the latest earnings results.

Resideo (NYSE: REZI)

Resideo Technologies, Inc. (NYSE: REZI) is a manufacturer and distributor of technology-driven products and solutions for home comfort, energy management, water management, and safety and security.

Resideo reported revenues of $1.86 billion, up 2% year on year. This print fell short of analysts’ expectations by 0.6%. Overall, it was a slower quarter for the company with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.

Resideo scored the highest full-year guidance raise of the whole group. Still, the market seems discontent with the results. The stock is down 0.5% since reporting and currently trades at $36.26.

Read our full report on Resideo here, it’s free for active Edge members.

Best Q3: Carlisle (NYSE: CSL)

Originally founded as Carlisle Tire and Rubber Company, Carlisle Companies (NYSE: CSL) is a multi-industry product manufacturer focusing on construction materials and weatherproofing technologies.

Carlisle reported revenues of $1.35 billion, flat year on year, outperforming analysts’ expectations by 1.2%. The business had a very strong quarter with an impressive beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ organic revenue estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $332.86.

Is now the time to buy Carlisle? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Tecnoglass (NYSE: TGLS)

The first-ever Colombian company to trade on the NASDAQ, Tecnoglass (NYSE: TGLS) is a manufacturer of architectural glass, windows, and aluminum products.

Tecnoglass reported revenues of $260.5 million, up 9.3% year on year, falling short of analysts’ expectations by 2.1%. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.

As expected, the stock is down 7.2% since the results and currently trades at $51.97.

Read our full analysis of Tecnoglass’s results here.

Sherwin-Williams (NYSE: SHW)

Widely known for its success in the paint industry, Sherwin-Williams (NYSE: SHW) is a manufacturer of paints, coatings, and related products.

Sherwin-Williams reported revenues of $6.36 billion, up 3.2% year on year. This number beat analysts’ expectations by 2.6%. It was a strong quarter as it also recorded an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ revenue estimates.

Sherwin-Williams achieved the biggest analyst estimates beat among its peers. The stock is down 2.6% since reporting and currently trades at $331.75.

Read our full, actionable report on Sherwin-Williams here, it’s free for active Edge members.

Valmont (NYSE: VMI)

Credited with an invention in the 1950s that improved crop yields, Valmont (NYSE: VMI) provides engineered products and infrastructure services for the agricultural industry.

Valmont reported revenues of $1.05 billion, up 2.5% year on year. This print topped analysts’ expectations by 1.5%. Overall, it was a strong quarter as it also logged an impressive beat of analysts’ adjusted operating income estimates and full-year EPS guidance beating analysts’ expectations.

The stock is up 2.4% since reporting and currently trades at $418.39.

Read our full, actionable report on Valmont here, it’s free for active Edge members.

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