Builders FirstSource Earnings: Here’s Why Investors are Ambivalent Now

Builders FirstSource, Inc. (NASDAQ:BLDR) had a loss and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Builders FirstSource, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.07 in the quarter versus EPS of $-0.11 in the year-earlier quarter.

Revenue: Rose 45.72% to $319.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Builders FirstSource, Inc. reported adjusted EPS loss of $0.07 per share. By that measure, the company beat the mean analyst estimate of $-0.1. It beat the average revenue estimate of $279.2 million.

Quoting Management: Commenting on the company’s results, Floyd Sherman, Builders FirstSource Chief Executive Officer said, “I am very pleased to start our fiscal year with such strong financial results, as we ended the first quarter with over $319 million in sales and improved our Adjusted EBITDA by $7.5 million. We were able to achieve topline growth of greater than 30 percent for a sixth consecutive quarter.” Mr. Sherman added, “Our sales increase once again exceeded the increase in residential construction activity, as actual single-family housing starts in the South Region increased 27.4 percent and single-family units under construction increased 23.2 percent.”

Key Stats (on next page)…

Revenue increased 11.17% from $287.59 million in the previous quarter. EPS increased to $-0.07 in the quarter versus EPS of $-0.08 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0.01 to a loss $0.04. For the current year, the average estimate has moved down from a loss of $0.07 to a loss of $0.14 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)