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Building materials company Builders FirstSource (NYSE: BLDR) will be reporting earnings tomorrow morning. Here’s what you need to know.
Builders FirstSource missed analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $3.82 billion, down 8% year on year. It was a slower quarter for the company, with full-year EBITDA guidance missing analysts’ expectations.
This quarter, analysts are expecting Builders FirstSource’s revenue to decline 5.7% year on year to $3.67 billion, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $1.44 per share.
Analysts covering the company have generally 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 five 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 1.6%, beating analysts’ expectations by 2%, and Masco reported a revenue decline of 6.5%, falling short of estimates by 2%. Simpson’s stock price was unchanged after the results, while Masco was down 1.7%.
Investors in the building products segment have had fairly steady hands going into earnings, with share prices down 1.6% on average over the last month. Builders FirstSource is down 4.3% during the same time and is heading into earnings with an average analyst price target of $167.90 (compared to the current share price of $120.24).