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Builders FirstSource (BLDR) Buys Apollo Software for $4.5M
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Builders FirstSource, Inc. (BLDR - Free Report) recently announced the acquisition of Apollo Software from Katerra — a construction automation startup company. This buyout will help Builders FirstSource align its overall construction process and lead the construction industry into a modern age of technological revolution and development. The transaction is valued at nearly $4.5 million.
This buyout will also help Builders FirstSource in the field of design collaboration, construction budgeting and organizing, and field assignment with mobile functionality. In line with the recent acquisition of WTS Paradigm, LLC, Apollo Software addresses inefficiencies in the process of digital home building.
With respect to this, president and CEO of Builders FirstSource, Dave Flitman stated, “We are well-positioned to lead the digital transformation in home construction, which significantly lags behind other industries in the application of technology to drive efficiency.”
Focus on Digital Platform Driving Growth
Builders FirstSource remains focused on investing in innovation and enhancing digital solutions for customers. The company’s latest deal to acquire WTS Paradigm is a testimony to the same. On Aug 17, 2021, Builders FirstSource completed the acquisition of WTS Paradigm, LLC -- a software solutions and services provider for the building products industry.
The company is increasing its investment to support technology and automation that will deliver operational excellence and increased volume of sales. The standardization and automation processes along with technology-based workflows will help minimize costs, streamline business operations and enhance working capital efficiency.
During second-quarter 2021, the company adopted new logistics technologies, mainly delivery and dispatch management systems. The company’s digital strategy includes three major areas, firstly to focus on internal processes and productivity by investing in technology to drive operational efficiency and excellence, next to help streamline interactions with its vendors and customers and lastly to focus on external innovation and investment to offer value-added digital products and services that support customers' success and growth.
So far this year, shares of Builders FirstSource have surged 33.3% compared with the Zacks Building Products – Retail industry’s 21.2% rally. Notably, earnings estimates for 2021 have moved up 12.4% over the past 30 days, depicting analysts’ optimism regarding its growth potential. Robust demand for single-family housing, repair & remodeling activities and low mortgage rates are major tailwinds for the company’s products and services.
Image: Bigstock
Builders FirstSource (BLDR) Buys Apollo Software for $4.5M
Builders FirstSource, Inc. (BLDR - Free Report) recently announced the acquisition of Apollo Software from Katerra — a construction automation startup company. This buyout will help Builders FirstSource align its overall construction process and lead the construction industry into a modern age of technological revolution and development. The transaction is valued at nearly $4.5 million.
This buyout will also help Builders FirstSource in the field of design collaboration, construction budgeting and organizing, and field assignment with mobile functionality. In line with the recent acquisition of WTS Paradigm, LLC, Apollo Software addresses inefficiencies in the process of digital home building.
With respect to this, president and CEO of Builders FirstSource, Dave Flitman stated, “We are well-positioned to lead the digital transformation in home construction, which significantly lags behind other industries in the application of technology to drive efficiency.”
Focus on Digital Platform Driving Growth
Builders FirstSource remains focused on investing in innovation and enhancing digital solutions for customers. The company’s latest deal to acquire WTS Paradigm is a testimony to the same. On Aug 17, 2021, Builders FirstSource completed the acquisition of WTS Paradigm, LLC -- a software solutions and services provider for the building products industry.
The company is increasing its investment to support technology and automation that will deliver operational excellence and increased volume of sales. The standardization and automation processes along with technology-based workflows will help minimize costs, streamline business operations and enhance working capital efficiency.
During second-quarter 2021, the company adopted new logistics technologies, mainly delivery and dispatch management systems. The company’s digital strategy includes three major areas, firstly to focus on internal processes and productivity by investing in technology to drive operational efficiency and excellence, next to help streamline interactions with its vendors and customers and lastly to focus on external innovation and investment to offer value-added digital products and services that support customers' success and growth.
So far this year, shares of Builders FirstSource have surged 33.3% compared with the Zacks Building Products – Retail industry’s 21.2% rally. Notably, earnings estimates for 2021 have moved up 12.4% over the past 30 days, depicting analysts’ optimism regarding its growth potential. Robust demand for single-family housing, repair & remodeling activities and low mortgage rates are major tailwinds for the company’s products and services.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Builders FirstSource has a Zacks Rank #3 (Hold). Some better-ranked stocks in the Zacks Retail and Wholesale sector include GMS Inc. (GMS - Free Report) , Tecnoglass Inc. (TGLS - Free Report) and AutoZone, Inc. (AZO - Free Report) , each sporting a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GMS has a trailing four-quarter earnings surprise of 19.5%, on average.
Tecnoglass' earnings for 2021 are expected to rise 74.7% and AutoZone’s earnings for fiscal 2021 are likely to improve 24.4%.