Dallas, Texas 10/31/2013 (Financialstrend) – Headwaters Inc (NYSE:HW) is a building materials provider with market cap of $664 million. During trading yesterday, it shed close to 5.1% of its market value. It ended October 30 trading at $9.12. While it would be difficult to point your finger at any one specific trigger point for the sudden sell-off experienced by the stock
The construction material supplier which recorded sales of $664 million over the last 12 months has announced that it will host the results announcement for its fourth quarter operations which ended on September 30 on November 5.
. Analyst have been predicting that companies like headwaters and its peers are navigating through uncertain economic scenarios since there will be a seasonal slowdown in building activity with the holiday season upon us. The trade watchers also point out that in the last weeks of September and October this year, federal grants dependent construction activity came to a standstill due to the government shutdown.
In its third quarter which ended on June 30, the 2465 strong employee base firm had recorded sales increase of 12% in comparison to its 3Q12. The call out performance though was the stupendous 333% increase in the earnings per share in the same comparison period. While sales did go up, the company is struggling to achieve profitability. Its profit margins are down 1.2% over the trailing 12 months and net loss in the same period is $1.9 million. The stock has been under pressure to show growth over the past 6 to 8 months. This can be gauged by the fact that its 200 day moving daily average is 5.6% down as of October 30. In the past 6 months, the stock has shed close to 15% of its market value. The firm has managed to turn the corner and post positive gains during the past 30 days of trading.