Beacon Roofing Supply, Inc.’s (BECN - Free Report) shares fell 4.6% in the after-hour trading session, following its fourth-quarter fiscal 2019 earnings release. The company reported lower-than-expected earnings and net sales during the quarter. Also, its bottom line declined from the prior-year period due to higher product and acquisition-related costs.
Beacon Roofing reported adjusted earnings of $1.04 per share, missing the Zacks Consensus Estimate of $1.17 by 11.1%. The reported figure declined 2.8% from $1.07 per share a year ago.
Net sales of $2.03 billion lagged the consensus mark of $2.06 billion by 1.4%. Nonetheless, the said figure grew 4.9% year over year. The improvement was backed by 3.2% organic sales improvement, driven by residential roofing organic growth of 11.5%.
Beacon Roofing Supply, Inc. Price, Consensus and EPS Surprise
Segment & Operating Details
Sales in the Residential roofing product segment (accounting for 44.9% of total net sales) increased 12.7% to $912.2 million and that of Non-residential roofing product unit (24.9%) was up 2.4% from a year ago to $505.2 million. However, Complementary products’ (30.2%) sales were down 3.2% year over year to $612.6 million.
Existing market sales increased 4.8% from the prior-year quarter, attributed to 13.2% growth in residential roofing. Also, the metric climbed 3.2% year over year on the basis of business day.
Cost of goods sold (accounting for 75.7% of net sales) totaled $1,536.5 million, increasing 1.1% year over year. Gross margin contracted 110 basis points (bps) to 24.3%.
Operating expenses remained on par with the prior-year figure. However, operating income fell 110 bps. Adjusted EBITDA margin contracted 90 bps to 8.3%.
Cash Position
As of Sep 30, 2019, Beacon Roofing had cash and cash equivalents of $72.3 million, down from $129.9 million at 2018-end. Cash provided by operations was $212.7 million compared with $539.4 million reported a year ago.
Fiscal 2019 Highlights
Beacon Roofing’s adjusted earnings of $2.26 per share increased 16.3% year over year and surpassed analysts’ expectation by 2.7%. Also, revenues of $7.11 billion in fiscal 2019 were up 10.7% year over year. However, net sales lagged the consensus mark by 0.5%.
Adjusted EBITDA margin in fiscal 2019 contracted 80 bps from a year ago.
Zacks Rank and Stocks to Consider
Beacon Roofing currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the same industry include BMC Stock Holdings, Inc. , Builders FirstSource, Inc. (BLDR - Free Report) and GMS Inc. (GMS - Free Report) . While BMC Stock sports a Zacks Rank #1 (Strong Buy), Builders FirstSource and GMS carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BMC Stock and Builders FirstSource surpassed the consensus mark in each of the trailing four quarters, with the average being 29.3% and 28.2%, respectively.
GMS's EPS growth rate for the current year is expected to be 11.1%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Beacon Roofing Supply, Inc.’s (BECN - Free Report) shares fell 4.6% in the after-hour trading session, following its fourth-quarter fiscal 2019 earnings release. The company reported lower-than-expected earnings and net sales during the quarter. Also, its bottom line declined from the prior-year period due to higher product and acquisition-related costs.
Beacon Roofing reported adjusted earnings of $1.04 per share, missing the Zacks Consensus Estimate of $1.17 by 11.1%. The reported figure declined 2.8% from $1.07 per share a year ago.
Net sales of $2.03 billion lagged the consensus mark of $2.06 billion by 1.4%. Nonetheless, the said figure grew 4.9% year over year. The improvement was backed by 3.2% organic sales improvement, driven by residential roofing organic growth of 11.5%.
Beacon Roofing Supply, Inc. Price, Consensus and EPS Surprise
Segment & Operating Details
Sales in the Residential roofing product segment (accounting for 44.9% of total net sales) increased 12.7% to $912.2 million and that of Non-residential roofing product unit (24.9%) was up 2.4% from a year ago to $505.2 million. However, Complementary products’ (30.2%) sales were down 3.2% year over year to $612.6 million.
Existing market sales increased 4.8% from the prior-year quarter, attributed to 13.2% growth in residential roofing. Also, the metric climbed 3.2% year over year on the basis of business day.
Cost of goods sold (accounting for 75.7% of net sales) totaled $1,536.5 million, increasing 1.1% year over year. Gross margin contracted 110 basis points (bps) to 24.3%.
Operating expenses remained on par with the prior-year figure. However, operating income fell 110 bps. Adjusted EBITDA margin contracted 90 bps to 8.3%.
Cash Position
As of Sep 30, 2019, Beacon Roofing had cash and cash equivalents of $72.3 million, down from $129.9 million at 2018-end. Cash provided by operations was $212.7 million compared with $539.4 million reported a year ago.
Fiscal 2019 Highlights
Beacon Roofing’s adjusted earnings of $2.26 per share increased 16.3% year over year and surpassed analysts’ expectation by 2.7%. Also, revenues of $7.11 billion in fiscal 2019 were up 10.7% year over year. However, net sales lagged the consensus mark by 0.5%.
Adjusted EBITDA margin in fiscal 2019 contracted 80 bps from a year ago.
Zacks Rank and Stocks to Consider
Beacon Roofing currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the same industry include BMC Stock Holdings, Inc. , Builders FirstSource, Inc. (BLDR - Free Report) and GMS Inc. (GMS - Free Report) . While BMC Stock sports a Zacks Rank #1 (Strong Buy), Builders FirstSource and GMS carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BMC Stock and Builders FirstSource surpassed the consensus mark in each of the trailing four quarters, with the average being 29.3% and 28.2%, respectively.
GMS's EPS growth rate for the current year is expected to be 11.1%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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