Builders FirstSource Earnings: Higher Expenses Shrinks Margins, Revenues SURGE

Builders FirstSource Inc. ‘s (NASDAQ:BLDR) second quarter loss narrowed due mainly to positive revenue growth. Builders FirstSource is a supplier and manufacturer of structural and related building products for residential new construction.

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Builders FirstSource Inc. Earnings Cheat Sheet

Results: Loss narrowed to $12.1 million (loss of 13 cents per diluted share) from $15.5 million (loss of 16 cents per share) in the same quarter a year earlier.

Revenue: Rose 31.7% to $271.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Builders FirstSource Inc. beat the mean analyst estimate of a loss of 5 cents per share. It beat the average revenue estimate of $245 million.

Quoting Management: “We delivered our best operating performance in nearly five years, reporting positive Adjusted EBITDA of $2.1 million for the second quarter, and improving to break-even Adjusted EBITDA June year-to-date,” said Floyd Sherman, Builders FirstSource Chief Executive Officer. “Our second quarter sales grew 31.7 percent compared to the second quarter of 2011. Over the same time period, actual single-family housing starts in the South Region increased 21.3 percent while single-family units under construction increased 1.5 percent. Our topline growth far exceeded the increase in residential construction activity, and we met our primary goal for the quarter of getting back to positive EBITDA.”

Key Stats:

Revenue has increased for four quarters in a row. Revenue increased 34.7% to $219.4 million in the first quarter. The figure rose 31% in the fourth quarter of the last fiscal year from the year earlier and climbed 20.4% in the third quarter of the last fiscal year from the year-ago quarter.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 3 cents in the first quarter and by 2 cents in the fourth quarter of the last fiscal year.

Looking Forward: The average estimate for the third quarter is steady at 5 cents a share. For the fiscal year, the average estimate has moved from a loss of 36 cents a share to a loss of 27 cents over the last sixty days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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