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Griffon (GFF) to Report Q4 Earnings: What's in the Cards?

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Griffon Corporation (GFF - Free Report) is slated to report fourth-quarter and fiscal 2020 (ended September 2020) results on Nov 12.

The company delivered better-than-expected results in the last four quarters, with an earnings surprise of 117.00%, on average. Notably, its reported earnings of 59 cents per share in the prior quarter surpassed the Zacks Consensus Estimate of 12 cents.

In the past three months, shares of the company have declined 5.1% compared with the industry’s growth of 15.1%.



Let us delve deeper.

Key Factors & Estimates for Q4

Griffon’s specialized building and household products, favorable pricing and healthy manufacturing capabilities are anticipated to have aided results in the fiscal fourth quarter. Also, its diversity in end-markets, product innovation, focus on expanding e-commerce business and technological advancements are likely to have aided the company.

Further, it is worth mentioning here that the company’s operational actions and portfolio-reshaping efforts might have boosted its margins and cash flow in the quarter under review. Synergistic gains from acquired assets as well as benefits from deleveraging efforts by the company too will likely be reflected in the quarterly results.

On the flip side, impacts of Griffon’s direct exposure to the pandemic-related threats or headwinds arising from customers fearing business losses due to the mayhem might have affected the company’s performance during the quarter to be reported. Also, financial obligations related to high debt levels as well as any rise in costs and expenses might be concerns for the margin profile.

The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $615 million, suggesting a 7.1% increase from the year-ago quarter and a 2.7% decline from the last reported quarter.

The Zack Consensus Estimate for the company’s quarterly earnings is pegged at 47 cents. This estimate reflects growth of 17.5% from the year-ago quarter but a drop of 20.3% from the prior quarter.

Earnings Whispers

Our proven model does not suggest an earnings beat for Griffon this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case with Griffon as is shown below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Griffon has an Earnings ESP of -1.08%, as the Most Accurate Estimate of 46 cents comes in below the Zacks Consensus Estimate of 47 cents.

Griffon Corporation Price, Consensus and EPS Surprise

Griffon Corporation Price, Consensus and EPS Surprise

Griffon Corporation price-consensus-eps-surprise-chart | Griffon Corporation Quote

Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).

Stocks to Consider

Here are some companies that you may want to consider as these have the right combination of elements to post an earnings beat this season.

Atmos Energy Corporation (ATO - Free Report) currently has an Earnings ESP of +1.92% and is a Zacks #3 Ranked player, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Nordson Corporation (NDSN - Free Report) presently has an Earnings ESP of +1.96% and carries a Zacks Rank of 2.

HD Supply Holdings, Inc. currently has an Earnings ESP of +10.06% and holds a Zacks Rank #3.

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