Stock Building Supply reported four-quarter earnings Tuesday that missed Wall Street estimates both for profitability and net sales.
Raleigh-based Stock reported adjusted net income of $3.1 million, or 12 cents per share, compared with net income of $3 million, or 12 cents per share during the same period last year. The consensus among analysts who cover the company was earnings of 15 cents per share.
Stock reported net sales of $317.1 million, a 3.9 percent increase over the fourth quarter of 2013. That was below the $330.5 million forecast by analysts. Gross profit in the quarter was $75.8 million, up 2.8 percent from the same period a year ago.
Stock sells windows, doors and other housing materials in 14 states. Its core customers are both homebuilders and remodeling contractors. The strength of its business is tied directly to the pace of new home construction in the U.S., which was steady but slower than anticipated for much of 2014.
Stock CEO Jeff Rea noted that, for the full year, the company achieved net sales growth of nearly 10 percent and net profit growth of 12 percent.
“During 2014, the U.S. housing market maintained a gradual and steady pace of recovery and our business teams continued to drive solid relative growth across our end-use market segments,” he said in a statement.
Stock shares closed Monday at $15.53. The stock is down nearly 18 percent over the past year.