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In the last reported quarter, the company’s adjusted earnings topped the Zacks Consensus Estimate by 81.4% and increased 174.6% year over year. Net sales topped the consensus estimate by 19.6% and increased 36.1% from the year-ago quarter’s levels. The upside was driven by solid demand for its products amid supply woes.
Trend in Estimate Revision
The Zacks Consensus Estimate for BLDR’s second-quarter earnings is pegged at $3.00 per share, indicating an 8.7% increase from the prior-year reported figure of $2.76. The consensus estimate for net sales is pegged at $5.48 billion, suggesting a 1.8% decline from the year-ago quarter’s reported figure of $5.58 billion.
Core organic sales growth in value-added products and acquisitions are likely to have benefited BLDR in second-quarter 2022. BLDR has been witnessing growth in value-added product volume, led by strong demand for Windows, Doors and Millwork products. The repair and remodel/other category has also been adding to the positives.
Furthermore, an opportunistic approach to acquisitions is an important part of Builders FirstSource’s growth strategy. These acquisitions broadened the company’s product portfolio and expanded its geographic footprint and market share. Its recent buyouts are will likely get reflected in the company’s performance for the to-be-reported quarter.
BLDR has been leveraging sales growth, with emphasis on cost management, operational excellence and productivity initiatives that may have driven profitability in the quarter to be reported. Furthermore, Builders FirstSource has been focused on investing in innovation and enhancing digital solutions for customers. The standardization and automation processes and technology-based workflows may have helped minimize costs, thereby driving its bottom line, expanding margins and boosting profitability.
However, the company has been witnessing inflation related to raw materials, which is likely to have hurt the bottom line in the second quarter. It has been facing supply-related challenges with respect to some of the products, including OSB, plywood, lumber and particleboard. This is likely to have put pressure on margins to some extent.
What the Zacks Model Unveils
Our proven model predict an earnings beat for Builders FirstSource this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat for the to-be-reported quarter:
Universal Technical Institute (UTI - Free Report) has an Earnings ESP of +30.00% and a Zacks Rank #2.
Universal Technical’s earnings surpassed the consensus mark in three of the trailing four quarters, the average being 998.15%.
Leggett & Platt, Incorporated (LEG - Free Report) has an Earnings ESP of +4.29% and a Zacks Rank #3.
Leggett’s earnings surpassed the consensus mark in three of the trailing four quarters, the average being 11.54%.
Marriott International, Inc. (MAR - Free Report) has an Earnings ESP of +7.11% and a Zacks Rank #2.
Marriott’s earnings surpassed the consensus mark in each of the trailing four quarters, the average being 36.2%.
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Builders FirstSource (BLDR) to Post Q2 Earnings: What's Up?
Builders FirstSource, Inc. (BLDR - Free Report) is slated to report second-quarter 2022 results on Aug 1, before the opening bell.
In the last reported quarter, the company’s adjusted earnings topped the Zacks Consensus Estimate by 81.4% and increased 174.6% year over year. Net sales topped the consensus estimate by 19.6% and increased 36.1% from the year-ago quarter’s levels. The upside was driven by solid demand for its products amid supply woes.
Trend in Estimate Revision
The Zacks Consensus Estimate for BLDR’s second-quarter earnings is pegged at $3.00 per share, indicating an 8.7% increase from the prior-year reported figure of $2.76. The consensus estimate for net sales is pegged at $5.48 billion, suggesting a 1.8% decline from the year-ago quarter’s reported figure of $5.58 billion.
Builders FirstSource, Inc. Price and EPS Surprise
Builders FirstSource, Inc. price-eps-surprise | Builders FirstSource, Inc. Quote
Factors to Note
Core organic sales growth in value-added products and acquisitions are likely to have benefited BLDR in second-quarter 2022. BLDR has been witnessing growth in value-added product volume, led by strong demand for Windows, Doors and Millwork products. The repair and remodel/other category has also been adding to the positives.
Furthermore, an opportunistic approach to acquisitions is an important part of Builders FirstSource’s growth strategy. These acquisitions broadened the company’s product portfolio and expanded its geographic footprint and market share. Its recent buyouts are will likely get reflected in the company’s performance for the to-be-reported quarter.
BLDR has been leveraging sales growth, with emphasis on cost management, operational excellence and productivity initiatives that may have driven profitability in the quarter to be reported. Furthermore, Builders FirstSource has been focused on investing in innovation and enhancing digital solutions for customers. The standardization and automation processes and technology-based workflows may have helped minimize costs, thereby driving its bottom line, expanding margins and boosting profitability.
However, the company has been witnessing inflation related to raw materials, which is likely to have hurt the bottom line in the second quarter. It has been facing supply-related challenges with respect to some of the products, including OSB, plywood, lumber and particleboard. This is likely to have put pressure on margins to some extent.
What the Zacks Model Unveils
Our proven model predict an earnings beat for Builders FirstSource this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Currently, it has a Zacks Rank #3 and an Earnings ESP of +18.54%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat for the to-be-reported quarter:
Universal Technical Institute (UTI - Free Report) has an Earnings ESP of +30.00% and a Zacks Rank #2.
Universal Technical’s earnings surpassed the consensus mark in three of the trailing four quarters, the average being 998.15%.
Leggett & Platt, Incorporated (LEG - Free Report) has an Earnings ESP of +4.29% and a Zacks Rank #3.
Leggett’s earnings surpassed the consensus mark in three of the trailing four quarters, the average being 11.54%.
Marriott International, Inc. (MAR - Free Report) has an Earnings ESP of +7.11% and a Zacks Rank #2.
Marriott’s earnings surpassed the consensus mark in each of the trailing four quarters, the average being 36.2%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.