Builders FirstSource Earnings: Here’s Why the Stock is Down Now

Builders FirstSource, Inc. (NASDAQ:BLDR) delivered a profit 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. Shares are down 0.16%.

Builders FirstSource, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.01 in the quarter versus EPS of $-0.07 in the year-earlier quarter.

Revenue: Rose 46.42% to $398.15 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Builders FirstSource, Inc. reported adjusted EPS income of $0.01 per share. By that measure, the company beat the mean analyst estimate of $-0.04. It beat the average revenue estimate of $378.41 million.

Quoting Management: Floyd Sherman, Builders FirstSource Chief Executive Officer stated, “I am once again very pleased to report another quarter of improving financial performance. We ended the second quarter with almost $400 million in sales and improved our Adjusted EBITDA by over $14 million on a year-over-year basis, and our second quarter sales grew 46.4 percent compared to the second quarter of 2012. Over the same time period, actual single-family housing starts in the South Region increased 14.5 percent, and single-family units under construction increased 27.4 percent.”

Key Stats (on next page)…

Revenue increased 24.54% from $319.7 million in the previous quarter. EPS increased to $0.01 in the quarter versus EPS of $-0.07 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a loss of $0.02 to a loss $0.01. For the current year, the average estimate has moved up from a loss of $0.14 to a loss of $0.13 over the last ninety days.

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

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