The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Builders FirstSource beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP loss per share expanded.
Gross margins dropped, operating margins increased, net margins expanded.
Builders FirstSource reported revenue of $291.8 million. The three analysts polled by S&P Capital IQ looked for a top line of $282.5 million on the same basis. GAAP reported sales were 34% higher than the prior-year quarter's $217.2 million.
EPS came in at -$0.07. The four earnings estimates compiled by S&P Capital IQ predicted -$0.05 per share. GAAP EPS were -$0.14 for Q3 against -$0.12 per share for the prior-year quarter.
For the quarter, gross margin was 19.8%, 70 basis points worse than the prior-year quarter. Operating margin was -0.3%, 240 basis points better than the prior-year quarter. Net margin was -4.6%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $239.9 million. On the bottom line, the average EPS estimate is -$0.07.
Next year's average estimate for revenue is $1.01 billion. The average EPS estimate is -$0.30.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 224 members out of 273 rating the stock outperform, and 49 members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 give Builders FirstSource a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Builders FirstSource is buy, with an average price target of $5.38.
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