Beacon Roofing Supply (BECN - Free Report) is a Zacks Rank #5 (Strong Sell) and today is the Bear of the Day. Let's take a look a why the Zacks Rank slipped to the lowest level in this article.
Beacon Roofing Supply, Inc. is one of the largest distributors of residential and non-residential roofing materials in the United States and Canada. It also distributes other complementary exterior building products. It operate in several states and three Canadian provinces and is a leading distributor of roofing materials in key metropolitan markets in the Northeast, Mid-Atlantic, Southeast and Southwest regions of the United States and in Eastern Canada.
BECN posted a miss of the Zacks Consensus Estimate on November 19. The company posted a gain of $1.07 when the estimate was calling for $1.36. That 29 cent miss translates into a negative earnings surprise of 21%.
It was the third miss in a row for BECN, something investors do not like to see.
Since the miss, estimates have been dropping. The Zacks Consensus Estimate for the current quarter has slipped from $0.77 30 days ago to $0.57.
The Zacks Consensus Estimate for 2018 has dropped from $3.84 to $3.08 over that same time horizon.
The same can be said of the 2019 number, which has fallen from $4.55 to $3.45 over the same time period.
When estimates fall, the Zacks Rank falls with them.
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