Seesawing Stock: Griffon Corporation (NYSE: GFF)

On 21 Jan 2020, Griffon Corporation (NYSE: GFF) changed 1.80% to recent value of $22. The stock transacted 244307 shares during most recent day however it has an average volume of 188.07K shares. It spotted trading -13.73% off 52-week high price. On the other end, the stock has been noted 70.28% away from the low price over the last 52-weeks.

Griffon Corporation (GFF) recently stated results for the fourth quarter and fiscal year ended September 30, 2019.

For the full year 2019, revenue totaled $2.21B, increasing 12% from the previous year revenue of $1.98B. Organic growth in 2019 was 5%.

For the full year 2019, Income from continuing operations totaled $45.6M, or $1.06 per share, contrast to $33.3M, or $0.78 per share, in the previous year. Current year results included a benefit from the reversal of contingent consideration related to the Kelkay acquisition of $1.6M ($1.3M, net of tax, or $0.03 per share) and discrete and certain other tax provisions, net, that affect comparability of $2.0M or $0.05 per share. Previous year results included acquisition costs of $7.6M ($5.0M, net of tax, or $0.12 per share), special dividend ESOP charges of $3.2M ($2.1M, net tax, or $0.05), secondary equity offering costs of $1.2M ($0.8M, net tax, or $0.02), cost of life insurance benefit of $2.6M ($0.2M, net tax, or $0.01); and discrete and certain other tax benefits, net, that affect comparability of $9.4M or $0.22 per share. Not Including these items, current year adjusted income from continuing operations was $46.3M, or $1.08 per share contrast to $32.1M, or $0.76 per share, in the previous year, a 42% increase.

For the full year 2019, Adjusted EBITDA from continuing operations totaled $200M, increasing 19% from the previous year of $168M. Unallocated amounts (primarily corporate overhead) in 2019 and 2018 were $46M and $45M, respectively. Adjusted EBITDA not including unallocated amounts totaled $246M in 2019, increasing 15% from the previous year of $213M. Adjusted EBITDA is defined as net income not including interest income and expense, income taxes, depreciation and amortization, restructuring charges, loss on debt extinguishment and acquisition related expenses, as well as other items that may affect comparability, as applicable (“Adjusted EBITDA”, a non-GAAP measure).

Ronald J. Kramer, Chairman and Chief Executive Officer, commented, “We are happy with our results for the fiscal fourth quarter and full-year 2019 highlighted by strong organic growth and excellent progress on our acquisition integration activities driving increased margin and free cash flow. Our team continues to work hard to identify growth opportunities, while focusing on the optimization of our businesses to enhance returns to shareholders. This is underscored by the AMES’ next generation business platform investments that we reported recently. This multiyear project will improve our manufacturing and distribution efficiency, strengthen our consumer relationships and provide improved analytics. In addition to the growth, efficiency and competitive benefits, this initiative is intended to further expand our operating margin and free cash flow. We look forward to building on our success in the years ahead.”

GFF has a gross margin of 26.90% and an operating margin of 6.10% while its profit margin remained 1.70% for the last 12 months. Its earnings per share (EPS) expected to touch remained 256.20% for this year while earning per share for the next 5-years is expected to reach at 20.41%.  The company has 45.68M of outstanding shares and 36M shares were floated in the market. According to the most recent quarter its current ratio was 2.4 that represents company’s ability to meet its current financial obligations. The price moved ahead of 7.70% from the mean of 20 days, 4.73% from mean of 50 days SMA and performed 17.24% from mean of 200 days price. Company’s performance for the week was 12.07%, 7.21% for month and YTD performance remained 8.21%.


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