Stock Building Supply reported improved sales and profitability in the third quarter but fell short of Wall Street estimates.
Raleigh-based Stock reported adjusted net income of $5.8 million, or 22 cents per share, compared with net income of $4.2 million during the same period last year. The consensus among analysts who cover the company was adjusted net income of $6.17 million and 24 cents per share.
Stock reported net sales of $354.1 million, a 7.8 percent increase over the third quarter of 2013. That was below the $361.5 million forecast by analysts. Gross profit in the quarter was $84.4 million, up 12 percent from the same period a year ago.
Stock sells windows, doors, roofing and other housing materials in 21 metropolitan areas in 14 states. The company's core customers are both homebuilders and remodeling contractors.
The number of new homes being built in the U.S. increased less than 4 percent in the first nine of the year. Stock CEO Jeff Rea said in a statement that the company’s sales and profit growth continues to compare favorably to the sluggish rate of new home construction.
"While the U.S. housing market has been slower than anticipated so far in 2014, our service professionals have once again delivered solid operating result improvements, " he said.
Stock shares were down about 4 percent in early trading Tuesday.