James Hardie Industries PLC (ASX:JHX) shares surged in Australian trade on Wednesday after the building materials maker released strong preliminary earnings figures for the fiscal second quarter, helping quell concerns over a housing downturn.
James Hardie shares surged nearly 10% to A$33.43, outpacing a 0.4% drop in the ASX 200 and reaching their strongest level since mid-August.
The company said net sales for the September quarter are expected in the range of $1.29 billion and $1.30 billion, up from $961 million last year. Adjusted core earnings are expected between $326 million and $331 million, up from $$263 million last year.
Adjusted net income is expected between $151 million and $157 million, largely flat from last year.
The company, which is the world’s largest maker of fibre cement, said its sliding and trim sales had performed better than expected. Its recent acquisition of AZEK is also expected to factor into stronger earnings for James Hardie.
The company noted that while the broader construction industry still remained under pressure, its second quarter earnings were encouraging, and that it planned to update its annual guidance next month, when it releases its final second-quarter earnings.
Shares of the company had plummeted earlier this year after it issued a bleak warning for its North America business, as rising living costs largely deterred consumers from building or renovating their houses.
Source :
https://www.investing.com/news/stock-market-news/james-hardie-shares-surge-to-1-mth-high-on-strong-q2-guidance-4276079
