Stock Story -
Roofing materials distributor Beacon Roofing Supply (NASDAQ:BECN) will be announcing earnings results tomorrow after the bell. Here's what you need to know.
Beacon Roofing Supply beat analysts' revenue expectations by 1.4% last quarter, reporting revenues of $1.91 billion, up 10.4% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates and a decent beat of analysts' organic revenue estimates.
Is Beacon Roofing Supply a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Beacon Roofing Supply's revenue to grow 7.5% year on year to $2.69 billion, improving from the 6.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.79 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. Beacon Roofing Supply has missed Wall Street's revenue estimates three times over the last two years.
Looking at Beacon Roofing Supply's peers in the industrial distributors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Transcat delivered year-on-year revenue growth of 10.1%, missing analysts' expectations by 3.8%, and United Rentals reported revenues up 6.2%, in line with consensus estimates. Transcat traded down 13.7% following the results while United Rentals was up 5.4%.
Read the full analysis of Transcat's and United Rentals's results on StockStory.
There has been positive sentiment among investors in the industrial distributors segment, with share prices up 9.4% on average over the last month. Beacon Roofing Supply is up 14% during the same time and is heading into earnings with an average analyst price target of $115.4 (compared to the current share price of $100.09).
