Stock Story -
Building materials company Builders FirstSource (NYSE:BLDR) will be reporting earnings tomorrow before market open. Here's what you need to know.
Builders FirstSource beat analysts' revenue expectations by 1.7% last quarter, reporting revenues of $3.89 billion, flat year on year. It was an ok quarter for the company, with a solid beat of analysts' earnings estimates but a miss of analysts' Windows, doors & millwork revenue estimates.
Is Builders FirstSource a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Builders FirstSource's revenue to decline 1.1% year on year to $4.48 billion, improving from the 34.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.08 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Builders FirstSource has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 6.1% on average.
Looking at Builders FirstSource's peers in the home construction materials segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Masco's revenues decreased 1.7% year on year, meeting analysts' expectations, and Hayward reported flat revenue, in line with consensus estimates. Masco traded up 9.7% following the results while Hayward was also up 9.7%.
Read the full analysis of Masco's and Hayward's results on StockStory.
There has been positive sentiment among investors in the home construction materials segment, with share prices up 2.8% on average over the last month. Builders FirstSource is up 11.2% during the same time and is heading into earnings with an average analyst price target of $197.2 (compared to the current share price of $149.49).
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