Benzinga | Jul 28, 2021 07:17AM EDT

Owens Corning Shares Gain On Strong Q2 Results

* Owens Corning (NYSE:OC) reported second-quarter sales growth of 37.8% year-over-year to $2.24 billion, beating the consensus estimate of $2 billion.

* Sales by segments: Composites $583 million (+46.5% Y/Y), Insulation $806 million (+35% Y/Y), and Roofing $917 million (+35% Y/Y).

* Adjusted EPS improved to $2.60 from $0.91 in 2Q20, beating consensus estimates of $2.13.

* The gross margin expanded by 650 bps to 27.6%. The operating income increased by 153% Y/Y to $425 million, and the margin expanded by 865 bps to 18.9%.

* Owens Corning generated cash from operating activities year-to-date of $702 million, compared to $229 million a year ago. Free cash flow of $525 million.

* Adjusted EBIT margin expanded by 795 bps to 18.2%.

* The company finished the quarter with $2 billion of available liquidity, including $888 million in cash and cash equivalents.

* FY21 Outlook: The company expects the U.S. residential housing market to remain robust in the near term.

* The company expects general corporate expenses to be $150 million to $155 million, compared to the prior view of $135 million and $145 million. It expects capital additions of $460 million.

* Depreciation and amortization are now estimated to be roughly $500 million, up from $480 million. Interest expense is estimated to be $120 million to $130 million.

* Price action: OC shares trading higher by 1.93% at $94.00 in the premarket session on the last check Wednesday.