The 10-second takeaway
For the quarter ended June 30 (Q2), Builders FirstSource beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP loss per share shrank.
Gross margins dropped, operating margins expanded, net margins grew.
Builders FirstSource booked revenue of $271.9 million. The one analyst polled by S&P Capital IQ anticipated sales of $245.0 million on the same basis. GAAP reported sales were 32% higher than the prior-year quarter's $206.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.07. The one earnings estimate compiled by S&P Capital IQ predicted -$0.05 per share. GAAP EPS were -$0.13 for Q2 against -$0.16 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 19.7%, 100 basis points worse than the prior-year quarter. Operating margin was -0.5%, 250 basis points better than the prior-year quarter. Net margin was -4.4%, 310 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $285.0 million. On the bottom line, the average EPS estimate is -$0.04.
Next year's average estimate for revenue is $1.02 billion. The average EPS estimate is -$0.30.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 223 members out of 276 rating the stock outperform, and 53 members rating it underperform. Among 76 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 give Builders FirstSource a green thumbs-up, and 20 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Builders FirstSource is outperform, with an average price target of $4.00.
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