The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Builders FirstSource beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP loss per share dropped.
Margins expanded across the board.
Builders FirstSource booked revenue of $192.7 million. The three analysts polled by S&P Capital IQ predicted revenue of $177.1 million on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $147.1 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 -$0.10. The one earnings estimate compiled by S&P Capital IQ predicted -$0.11 per share on the same basis. GAAP EPS were -$0.18 for Q4 versus -$0.26 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 20.4%, 130 basis points better than the prior-year quarter. Operating margin was -4.1%, 900 basis points better than the prior-year quarter. Net margin was -8.7%, 800 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $186.5 million. On the bottom line, the average EPS estimate is -$0.09.
Next year's average estimate for revenue is $889.5 million. The average EPS estimate is -$0.21.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 214 members out of 260 rating the stock outperform, and 46 members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 58 give Builders FirstSource a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Builders FirstSource is hold, with an average price target of $3.25.
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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.