Building materials company Builders FirstSource (NYSE: BLDR) will be reporting results this Thursday before market open. Here’s what to expect.
Builders FirstSource met analysts’ revenue expectations last quarter, reporting revenues of $3.66 billion, down 6% year on year. It was a slower quarter for the company, with a miss of analysts’ Windows, doors & millwork revenue estimates and full-year EBITDA guidance missing analysts’ expectations significantly.
Is Builders FirstSource a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Builders FirstSource’s revenue to decline 4.3% year on year to $4.26 billion, a further deceleration from the 1.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.33 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Builders FirstSource has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Builders FirstSource’s peers in the building products segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Simpson delivered year-on-year revenue growth of 5.7%, beating analysts’ expectations by 5.3%, and Lennox reported revenues up 3.4%, topping estimates by 2.5%. Simpson traded up 10.7% following the results while Lennox was also up 7.2%.
Read our full analysis of Simpson’s results here and Lennox’s results here.
There has been positive sentiment among investors in the building products segment, with share prices up 5.5% on average over the last month. Builders FirstSource is up 14.6% during the same time and is heading into earnings with an average analyst price target of $143.42 (compared to the current share price of $133.75).
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