Builders FirstSource Earnings Cheat Sheet: Net Income Loss Misses Estimate

Builders FirstSource, Inc. (NASDAQ:BLDR) reported its results for the first quarter. Builders FirstSource, Inc. is a supplier and manufacturer of structural and related building products for residential new construction.

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Builders FirstSource Earnings Cheat Sheet for the First Quarter

Results: Loss narrowed to $21.2 million (loss of 22 cents/diluted share) by 32.3% from a loss of $31.4 million (loss of 38 cents/diluted share) in the same quarter a year earlier.

Revenue: Rose 0.9% to $162.8 million YoY.

Actual vs. Wall St. Expectations: BLDR fell short of the mean analyst estimate of a loss of 17 cents/share. Estimates ranged from a loss of 12 cents per share to a loss of 23 cents per share.

Quoting Management: “We believe our improved sales performance despite the difficult macro-economic environment was due to our strong competitive position and competitors exiting our markets, and is indicative of market share gains over this time period. The March 2011 seasonally adjusted annual rate for U.S. single-family housing starts decreased to 422,000, down approximately 21 percent from the annualized rate of 535,000 in March 2010,” said Floyd Sherman, Builders FirstSource Chief Executive Officer. “Actual U.S. single-family housing starts for the first quarter of 2011 were 89,900, a decrease of 21.4 percent compared to the first quarter of 2010. In the South Region, as defined by the U.S. Census Bureau, and which includes all of our markets, we saw similar trends as actual single-family housing starts were 52,700, down 19.3 percent, and single-family units under construction were 110,800, down 14.6 percent compared to the first quarter of 2010.”

Key Stats: A year-over-year revenue increase last quarter snaps a streak of two consecutive quarters of revenue declines. Revenue fell 4.5% in the fourth quarter of the last fiscal year and fell 4.5% in the third quarter of the last fiscal year.

Competitors to Watch: Lowe’s Companies, Inc. (NYSE:LOW), The Home Depot, Inc. (NYSE:HD), Building Materials Holding Corp. (BLGM), Lumber Liquidators Hldgs., Inc. (NYSE:LL), BlueLinx Holdings Inc. (NYSE:BXC), Tractor Supply Company (NASDAQ:TSCO), ThermoView Industries Inc. (THVW), Huttig Building Products, Inc. (HBPI), and Cashbuild Limited (CSB).

Today’s Performance: Shares of BLDR are trading at $2.81 as of April 25, 2011 at 8:00 AM ET, unchanged from the previous close.


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