What To Expect From Tecnoglass's (TGLS) Q4 Earnings

Glass and windows manufacturer Tecnoglass (NYSE:TGLS) will be reporting earnings tomorrow before the bell. Here’s what to look for.

Tecnoglass missed analysts’ revenue expectations last quarter, reporting revenues of $260.5 million, up 9.3% year on year. It was a disappointing quarter for the company, with full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.

This quarter, the market is expecting Tecnoglass’s revenue to be flat year on year, slowing from the 23.1% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Tecnoglass has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Tecnoglass’s peers in the building materials segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Carlisle posted flat year-on-year revenue, beating analysts’ expectations by 1.4%, and Valmont reported flat revenue, falling short of estimates by 0.7%. Carlisle traded up 11.1% following the results while Valmont was down 4.3%.

There has been positive sentiment among investors in the building materials segment, with share prices up 5.3% on average over the last month. Tecnoglass’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $71.50 (compared to the current share price of $49.41).