The 10-second takeaway
For the quarter ended June 30 (Q2), Builders FirstSource beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share increased. GAAP loss per share increased.
Gross margins expanded, operating margins increased, net margins shrank.
Builders FirstSource reported revenue of $398.1 million. The four analysts polled by S&P Capital IQ wanted to see revenue of $383.8 million on the same basis. GAAP reported sales were 46% higher than the prior-year quarter's $271.9 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 $0.01. The four earnings estimates compiled by S&P Capital IQ predicted -$0.04 per share. Non-GAAP EPS were $0.01 for Q2 compared to -$0.07 per share for the prior-year quarter. GAAP EPS were -$0.50 for Q2 against -$0.13 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 20.7%, 100 basis points better than the prior-year quarter. Operating margin was 3.3%, 380 basis points better than the prior-year quarter. Net margin was -12.1%, 770 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $391.4 million. On the bottom line, the average EPS estimate is -$0.01.
Next year's average estimate for revenue is $1.46 billion. The average EPS estimate is -$0.06.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 222 members out of 272 rating the stock outperform, and 50 members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 65 give Builders FirstSource a green thumbs-up, and 13 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 $7.40.
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