Stock Building Supply reported increased revenue and profit in the second quarter despite very little growth in new housing construction during the first half the year.
Stock reported net income of $5.6 million, or 21 cents per share, compared to net income of $2 million, or 7 cents per share, during the same period last year. The consensus among analysts who cover the company was net income of $5.3 million and 21 cents per share.
Stock reported net sales of $344.6 million, a 9 percent increase over the second quarter of 2013. That was below the $360 million forecast by analysts. Gross profit in the quarter was $82.2 million, up 15 percent from the same period a year ago.
Stock sells windows, doors, roofing and other housing materials in 21 metropolitan areas in 13 states. The company’s core customers are both homebuilders and remodeling contractors.
The number of new homes being built in the U.S. increased just 1.2 percent in the first half of the year, in part because of severe weather in much of the country.
“While the pace of recovery in U.S. single-family starts has been slower than expected, we remain confident that the recovery in the residential construction market is progressing, and anticipate continued growth in our core business segments in the second half of 2014,” Stock CEO Jeff Rea said in a statement.
Stock raised $57.4 million in an initial public offering in August. The company’s stock, which began trading at $14, was at $15.44 in afternoon trading Tuesday.