The 10-second takeaway
For the quarter ended March 31 (Q1), Builders FirstSource beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly, and GAAP loss per share shrank.
Margins expanded across the board.
Builders FirstSource booked revenue of $219.4 million. The three analysts polled by S&P Capital IQ predicted net sales of $190.7 million on the same basis. GAAP reported sales were 35% higher than the prior-year quarter's $162.8 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 -$0.11. The two earnings estimates compiled by S&P Capital IQ predicted -$0.12 per share on the same basis. GAAP EPS were -$0.20 for Q1 compared to -$0.22 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 20.6%, 130 basis points better than the prior-year quarter. Operating margin was -2.7%, 670 basis points better than the prior-year quarter. Net margin was -8.7%, 430 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $234.6 million. On the bottom line, the average EPS estimate is -$0.06.
Next year's average estimate for revenue is $885.4 million. The average EPS estimate is -$0.30.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 224 members rating the stock outperform and 50 members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 60 give Builders FirstSource a green thumbs-up, and 11 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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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.