Gibraltar Industries Faces Challenges in Renewable Energy and Cannabis Sectors
Shares of Gibraltar Industries took a hit as the equipment supplier highlighted obstacles that some of its customers in the renewable energy and cannabis industries are currently experiencing.
The stock experienced an 11% drop, falling to $75.86 during morning trading, although shares are still showing a 44% increase over the past year.
Renewable Energy Setbacks
Based in Buffalo, N.Y., the company expressed concerns about permitting delays and tax incentive uncertainties affecting many of its renewable energy clients. Chief Executive Bill Bosway revealed that more customers than expected are delaying projects, leading to a slowdown in sales.
Cannabis Industry Impact
Additionally, Gibraltar Industries recorded a one-time charge due to a cannabis customer's unreceived payment, resulting in decreased earnings before interest, taxes, depreciation, and amortization in its agricultural technology division.
Financial Performance
Despite these challenges, sales saw a nearly 5% increase to reach $328.8 million in the fourth quarter. The company's 2024 sales and adjusted earnings outlook aligns closely with the consensus forecast from three Wall Street analysts covering the stock, as reported by FactSet.
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