JHX -8.46%: 3Q24 trading update from the building products company today was strong for the period, generating net profit after tax (NPAT) of $US180m which was a ~5% beat to consensus, however the guidance for Q4 looks a little light on, expecting NPAT of $US165-185m vs current market expectations for $US188m, which is essentially a 7% downgrade at the mid-point of the revised guidance. There is higher stock-based compensation going through the gravy train while it also looks like they are investing more back into the business i.e. higher reinvestment which is understandable given the ramp up in volumes.
- JHX has had a phenomenal run, but crowded longs that disappoint tend to struggle. Today’s pullback seems about right.
MM is now more neutral on JHX ~$54
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