James Hardie Industries (NYSE:JHX) Reaches New 12-Month High Following Earnings Beat

Key Points

• James Hardie exceeded quarterly expectations: Revenue rose 63.9% year over year to approximately $1.47 billion, while EPS of $0.36 surpassed the $0.32 consensus estimate. Shares reached a new 52-week high following the earnings release.
• Management raised fiscal 2027 guidance: Full-year revenue is now projected at $5.6 billion to $5.7 billion, above analyst expectations, with second-quarter guidance also exceeding consensus.
• Investors remain positive but valuation is elevated: Analysts largely rate the stock a Buy or Moderate Buy, although margin growth lagged revenue growth and the shares trade at a high earnings multiple, increasing execution risks.

Shares of James Hardie Industries PLC. (NYSE:JHX - Get Free Report) hit a new 52-week high on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $30.54 and last traded at $30.6220, with a volume of 2251673 shares trading hands. The stock had previously closed at $28.00.

The construction company reported $0.36 earnings per share for the quarter, beating analysts' consensus estimates of $0.32 by $0.04. James Hardie Industries had a net margin of 2.15% and a return on equity of 11.13%. The company had revenue of $1.47 billion for the quarter, compared to analyst estimates of $1.42 billion. During the same quarter last year, the business earned $0.29 EPS. James Hardie Industries's revenue for the quarter was up 63.9% on a year-over-year basis.

More James Hardie Industries News

Here are the key news stories impacting James Hardie Industries this week:

• Positive Sentiment: Quarterly results exceeded estimates. James Hardie reported fiscal Q1 revenue of approximately $1.47 billion, up 63.9% year over year and ahead of the $1.42 billion consensus estimate. EPS was $0.36 versus analyst expectations of $0.32. James Hardie quarterly earnings report
• Positive Sentiment: Management raised fiscal 2027 guidance. The company now expects full-year revenue of $5.6 billion to $5.7 billion, above the $5.4 billion analyst consensus. Second-quarter revenue guidance of $1.5 billion to $1.6 billion also exceeds the $1.3 billion consensus, providing a positive near-term earnings catalyst. James Hardie fiscal 2027 results and outlook
• Positive Sentiment: Cash generation and profitability improved. Net income attributable to common shareholders rose to $104.3 million, operating cash flow increased to $344 million, and capital expenditures declined to $89.8 million. The earnings presentation and conference call provided additional detail supporting the stronger outlook. James Hardie Q1 2027 earnings call transcript
• Neutral Sentiment: Institutional positioning was mixed, with several hedge funds adding shares while others reduced exposure. Recent analyst price targets have also varied widely, indicating some disagreement over valuation and upside.
• Negative Sentiment: Margin expansion lagged sales growth. Operating profit increased 9.5% year over year, substantially slower than revenue, while cost of sales climbed to approximately $925.9 million. Investors may also be cautious because the stock’s elevated valuation leaves less room for execution disappointments.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the company. Zacks Research upgraded James Hardie Industries from a "strong sell" rating to a "hold" rating in a research note on Monday, July 13th. Barclays reiterated a "positive" rating on shares of James Hardie Industries in a report on Friday, July 24th. Oppenheimer set a $36.00 price target on shares of James Hardie Industries in a report on Friday. Stephens lifted their price target on shares of James Hardie Industries from $31.00 to $33.00 and gave the company an "overweight" rating in a research report on Tuesday, July 28th. Finally, Truist Financial boosted their price objective on shares of James Hardie Industries from $30.00 to $40.00 and gave the stock a "buy" rating in a research note on Friday. Nine analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, James Hardie Industries presently has a consensus rating of "Moderate Buy" and a consensus price target of $29.11.

Institutional Investors Weigh In On James Hardie Industries

Several hedge funds have recently modified their holdings of JHX. Royal Bank of Canada boosted its holdings in James Hardie Industries by 17.0% in the 1st quarter. Royal Bank of Canada now owns 50,801 shares of the construction company's stock worth $1,197,000 after acquiring an additional 7,396 shares during the period. Goldman Sachs Group Inc. boosted its stake in shares of James Hardie Industries by 160.7% in the first quarter. Goldman Sachs Group Inc. now owns 2,697,663 shares of the construction company's stock valued at $63,557,000 after purchasing an additional 1,662,743 shares during the period. Jane Street Group LLC boosted its stake in shares of James Hardie Industries by 222.4% in the first quarter. Jane Street Group LLC now owns 279,009 shares of the construction company's stock valued at $6,573,000 after purchasing an additional 192,478 shares during the period. Russell Investments Group Ltd. grew its holdings in James Hardie Industries by 49.2% during the 2nd quarter. Russell Investments Group Ltd. now owns 11,603 shares of the construction company's stock valued at $312,000 after purchasing an additional 3,827 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. increased its position in shares of James Hardie Industries by 11,238.5% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,474 shares of the construction company's stock worth $40,000 after acquiring an additional 1,461 shares during the last quarter. 7.96% of the stock is currently owned by hedge funds and other institutional investors.

James Hardie Industries Price Performance

The firm has a market cap of $17.79 billion, a price-to-earnings ratio of 139.12, a P/E/G ratio of 13.94 and a beta of 1.77. The business's 50-day moving average price is $25.24 and its two-hundred day moving average price is $22.99. The company has a debt-to-equity ratio of 0.71, a current ratio of 1.58 and a quick ratio of 1.03.

About James Hardie Industries

James Hardie Industries plc NYSE: JHX is a global manufacturer of high-performance fiber cement building products. The company specializes in exterior cladding, trim and soffit, as well as interior backerboard solutions designed for residential and commercial construction. By combining cement, sand and cellulose fibers, James Hardie produces durable, low-maintenance materials that resist moisture, fire and termite damage, catering to builders, contractors and homeowners through a network of distributors and retail channels.

The company's flagship products include Hardie® Plank® and Hardie® Panel® siding systems, Hardie® BackerBoard® for tile applications, and a range of architectural trim solutions.

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