Builders FirstSource Earnings: What To Look For From BLDR

Building materials company Builders FirstSource (NYSE:BLDR) will be reporting results this Thursday before market open. Here’s what to expect.

Builders FirstSource missed analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $4.23 billion, down 5% year on year. It was a slower quarter for the company, with a miss of analysts’ Windows, doors & millwork revenue estimates and full-year revenue guidance missing analysts’ expectations significantly.

Is Builders FirstSource a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Builders FirstSource’s revenue to decline 9.2% year on year to $3.84 billion, a further deceleration from the 6.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.73 per share.Builders FirstSource Total Revenue

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 six times over the last two years.

Looking at Builders FirstSource’s peers in the building products segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Simpson delivered year-on-year revenue growth of 6.2%, beating analysts’ expectations by 3.1%, and Zurn Elkay reported revenues up 11.1%, topping estimates by 3%. Simpson traded up 6.1% following the results.

Read our full analysis of Simpson’s results here and Zurn Elkay’s results here.

There has been positive sentiment among investors in the building products segment, with share prices up 3.1% on average over the last month. Builders FirstSource’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $139.02 (compared to the current share price of $119.42).

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