NCI Building Systems Inc (NYSE: NCS) rose after the company reported better-than-expected earnings for its second quarter. The company issued strong third-quarter sales guidance.
Sales rose 8.7% to $457.1 million for the quarter, compared to $420.5 million in the prior year's second quarter
Gross profit was $104.1 million or 22.8% of sales, compared to $100.8 million or 24.0% of sales in the second quarter of 2017
The Company improved and replaced its debt structure, reducing its current effective cash interest rate from approximately 7.0% to 3.6% and extending the term to 2025
Net income was a loss of $5.7 million for the quarter, compared to net income of $17.0 million in the prior year's second quarter. Adjusted Net Income was $16.4 million this quarter, compared to $11.5 million in the prior year's second quarter
Looking ahead, NCI's key economic indicators are tracking to expectation and year-over-year growth in both bookings and backlog support the Company's favorable outlook for fiscal 2018. For the third quarter of fiscal 2018, NCI expects revenues to be in the range of $525 to $545 million and Adjusted EBITDA to be in the range of $56 to $66 million.
CEO Donald Riley said, "We are pleased with the strong second quarter performance of all our business segments, as we successfully maintained our commercial discipline in a rising cost environment.
"NCI's solid backlog and bookings continue to support our favorable outlook for 2018, and our key economic indicators continue to track to our expectations for year-over-year growth.
The shares climbed $1.60, or 8.3%, to $21.00.
