Beacon Roofing Supply
The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Beacon Roofing Supply beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded significantly.
Margins expanded across the board.
Beacon Roofing Supply recorded revenue of $489.9 million. The eight analysts polled by S&P Capital IQ expected a top line of $475.0 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $404.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.39. The 11 earnings estimates compiled by S&P Capital IQ forecast $0.30 per share on the same basis. GAAP EPS of $0.41 for Q1 were 86% higher than the prior-year quarter's $0.22 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.0%, 60 basis points better than the prior-year quarter. Operating margin was 7.0%, 210 basis points better than the prior-year quarter. Net margin was 3.9%, 140 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $338.3 million. On the bottom line, the average EPS estimate is -$0.08.
Next year's average estimate for revenue is $1.95 billion. The average EPS estimate is $1.42.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 52 members out of 74 rating the stock outperform, and 22 members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 give Beacon Roofing Supply a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Beacon Roofing Supply is outperform, with an average price target of $22.58.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.