Patrick Industries (PATK) Earnings Preview: What to Expect on October 31st
Patrick Industries, a leading player in the recreational vehicle (RV) and manufactured housing industries, is gearing up to release its quarterly earnings report on Thursday, October 31st. Investors are keenly focused on this announcement, hoping for positive news regarding earnings, future guidance, and the company’s overall trajectory.
Analyst Expectations and Key Metrics
Analysts predict that Patrick Industries will report earnings per share (EPS) of $1.87. Past performance suggests that guidance is a key driver of stock price movements, making this aspect particularly crucial for investors.
A Look Back: Analyzing Historical Performance
The company exceeded EPS expectations in its previous earnings release, delivering $2.16 against an estimate of $2.05. However, this positive surprise was followed by a 3.14% drop in the share price during the subsequent trading session. Here’s a closer look at the company’s recent earnings history:
| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q2 2024 | $2.05 | $2.16 | -3.0% |
| Q1 2024 | $1.32 | $1.79 | 1.0% |
| Q4 2023 | $1.35 | $1.49 | 4.0% |
| Q3 2023 | $1.75 | $1.81 | -1.0% |
Understanding Market Sentiment: Analyst Insights
Investors need to grasp the prevailing sentiment and expectations within the industry. Analysts have assigned Patrick Industries 10 ratings, resulting in a consensus rating of “Outperform.” The average one-year price target stands at $142.7, suggesting a potential 4.58% upside.
Comparative Analysis: How Does Patrick Industries Stack Up Against Peers?
To gain a better understanding of Patrick Industries’s standing within the industry, we’ll compare its performance to key competitors like LCI Industries, Visteon, and Phinia.
| Company | Consensus Rating | Average 1-Year Price Target | Potential Upside/Downside |
|—|—|—|—|
| Patrick Industries | Outperform | $142.7 | 4.58% Upside |
| LCI Industries | Buy | $119.0 | 12.79% Downside |
| Visteon | Outperform | $122.25 | 10.41% Downside |
| Phinia | Buy | $52.5 | 61.52% Downside |
Key Takeaways from Peer Analysis
The peer analysis reveals that Patrick Industries sits in the middle regarding consensus rating. It stands out as a leader in Revenue Growth, reflecting strong performance in this area. The company also tops the charts in Gross Profit among its peers. However, Patrick Industries lags behind in Return on Equity compared to its competitors.
Getting to Know Patrick Industries Better
Patrick Industries specializes in the design and manufacture of a diverse range of building products, including furniture, shelving, cabinets, bath fixtures, and countertops. The company operates through two segments: manufacturing and distribution. Its manufacturing segment, which generates the majority of revenue, focuses on laminated and vinyl products. The distribution segment handles prefinished wall and ceiling panels, electrical and plumbing products, all tailored to the RV and manufactured housing sectors.
Financial Insights: A Deep Dive into Key Metrics
Market Capitalization:
The company’s market capitalization falls below industry averages, indicating a smaller size compared to its peers. This could be influenced by factors like perceived growth potential or operational scale.Revenue Growth:
Patrick Industries has achieved a remarkable revenue growth rate of approximately 10.42% over the past three months. This significant increase in top-line earnings places the company above its peers in the Consumer Discretionary sector.Net Margin:
The company’s net margin falls below industry benchmarks, pointing to potential challenges in achieving strong profitability. With a net margin of 4.71%, Patrick Industries might need to address cost control strategies.Return on Equity (ROE):
Patrick Industries boasts an impressive ROE of 4.44%, exceeding industry averages. This demonstrates effective utilization of equity capital.Return on Assets (ROA):
The company’s ROA is below industry averages, suggesting possible difficulties in efficiently utilizing assets. With an ROA of 1.59%, Patrick Industries may need to address its approach to maximizing financial returns.Debt Management:
Patrick Industries carries a debt-to-equity ratio of 1.38, significantly higher than the industry average. This high reliance on borrowed funds raises concerns about financial leverage.Stay Informed: Track Patrick Industries’s Earnings Releases
For comprehensive coverage of all earnings releases for Patrick Industries, visit their earnings calendar on our website.
