Builders FirstSource Earnings: Another Solid Sales Quarter

Builders FirstSource Inc. (NASDAQ:BLDR) reported its results for the third quarter. 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 widened to $13.6 million (14 cents per diluted share) from $11.6 million (loss of 12 cents per share) in the same quarter a year earlier.

Revenue: Rose 34.3% to $291.8 million from the year-earlier quarter.

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

Quoting Management: “Sales for the third quarter of 2012 were $291.8 million, an increase of 34.3 percent when compared to the third quarter of 2011. Our topline growth continues to exceed the increase in residential construction activity, as actual single-family housing starts in the South Region increased 27.7 percent over the same time period and single-family units under construction increased only 12.4 percent,” said Builders FirstSource Chief Executive Officer Floyd Sherman. “For the second consecutive quarter, we reported positive Adjusted EBITDA, finishing with $3.0 million for the current quarter as compared to an Adjusted EBITDA loss of $0.7 million in the third quarter of 2011, and on a year-to-date basis, our Adjusted EBITDA has improved from a loss of $11.7 million in 2011 to positive $3.0 million in 2012.”

Key Stats:

The company has seen double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 30.4%, with the biggest boost coming in the first quarter when revenue rose 34.7% from the year earlier quarter.

After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the second quarter, it topped the mark by 3 cents, and in the first quarter, it was ahead by 2 cents.

Looking Forward: Expectations for the fourth quarter have not changed from 5 cents. Over the past sixty days, the average estimate for the fiscal year has risen from a loss of 36 cents to a loss of 27 cents.

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

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