NCI Building Systems Boosts 3Q Guidance

NCI Building Systems, Inc.

lifted its forecast for the third quarter. As a result, its revenue guidance came in above the expectations. The company expects the fourth quarter to be similar to that of the third quarter. NCI Building Systems boosted its revenue outlook to $458 - $469 million from $435 - $455 million projected by it earlier. Street analysts are looking for revenue of $445.58 million for the third quarter. Similarly, the company increased its gross profit margin to 26.5 – 28.0 percent from 23.0 – 25.5 percent. Its ESG&A expenses are expected to be $78.5 - $81.0 million, up from $74.5 - $77.5 million estimated by it earlier. As a result, the company expects adjusted EBITDA to be $53 - $63.0 million. The company's chairman and CEO, Norman Chambers, stated, "We are pleased to issue improved guidance for our third quarter. The increased business activity we have experienced over the past several months is providing increasing confidence and visibility on the second half of our 2016 fiscal year performance." He added, "As a result of our manufacturing and supply chain initiatives, combined with strong commercial focus and discipline in a rising steel price environment, we have been able to generate both top and bottom line growth at a faster pace than originally anticipated during the third quarter." On Friday, the stock gained 1.18 percent.