Building materials company Builders FirstSource (NYSE: BLDR) will be announcing earnings results this Thursday before market open. Here’s what you need to know.
Builders FirstSource missed analysts’ revenue expectations last quarter, reporting revenues of $3.36 billion, down 12.1% year on year. It was a slower quarter for the company, with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EBITDA estimates.
Is Builders FirstSource a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Builders FirstSource’s revenue to decline 13.3% year on year, a further deceleration from the 6% decrease it recorded in the same quarter last year.
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 multiple times over the last two years.
Looking at Builders FirstSource’s peers in the building products segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Simpson delivered year-on-year revenue growth of 9.1%, beating analysts’ expectations by 6.4%, and Masco reported revenues up 6.5%, topping estimates by 4.6%. Simpson traded up 2.4% following the results while Masco was also up 12.9%.
Read our full analysis of Simpson’s results here and Masco’s results here.
There has been positive sentiment among investors in the building products segment, with share prices up 14.1% on average over the last month. Builders FirstSource is up 12.1% during the same time and is heading into earnings with an average analyst price target of $116.90 (compared to the current share price of $88.41).
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