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TopBuild (BLD) Q4 Earnings & Sales Beat Estimates, Stock Up
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TopBuild Corp. (BLD - Free Report) reported solid results for fourth-quarter 2022. Its earnings and revenues surpassed the Zacks Consensus Estimate and improved significantly on a year-over-year basis. Solid contributions from all three end markets that BLD serves (residential, commercial and industrial), along with operational efficiency, drove the results.
Shares of TopBuild gained 3.6% during the trading session on Feb 23, 2023.
Robert Buck, president & CEO of TopBuild, stated, “TopBuild’s unique operating model continues to enable our ability to outperform in any environment. Since 2018, revenue has doubled, growing at a compounded annual rate of 20% and our adjusted EBITDA margin has expanded 690 basis points.”
The company’s adjusted earnings of $4.40 per share beat the consensus estimate of $4.02 by 9.5% and grew by a significant 41% from the prior-year figure.
Total net sales of $1.26 billion beat the consensus mark of $1.24 billion by 24% and increased 18.9% (14.2% on a same-branch basis) year over year. The rise was backed by improvements in all three end markets it serves.
Segmental Performance
Installation sales increased 21.4% year over year to $761.3 million. Acquisitions, volume and selling price added 0.8%, 12.4% and 8.2% to sales, respectively. The adjusted operating margin for the quarter expanded 170 basis points (bps) to 18.7%. The adjusted EBITDA margin improved 140 bps to 20.8% for the quarter.
Revenues of the Specialty Distribution segment grew 15.9% year over year to $563.1 million, driven by 11.5% growth in price and 9.5% from acquisitions. Volumes declined 5.1% year over year. The adjusted operating margin expanded 200 bps from the year-ago quarter’s level to 14.4%. Also, the adjusted EBITDA margin improved 170 bps to 16.7% for the quarter.
Operating Highlights
The adjusted gross margin of 29.7% expanded 160 bps year over year. Adjusted selling, general and administrative expenses, as a percentage of revenues, improved 40 bps to 13.5%. The adjusted operating margin expanded 200 bps from the year-ago period’s levels to 16.2%.
Adjusted EBITDA increased 30.4% from the year-ago quarter’s levels to $237.4 million. The adjusted EBITDA margin also improved 170 bps to 18.8% in the quarter.
2022 Highlights
Adjusted EPS was $17.11, reflecting a 57.7% increase from 2021. Sales were up 43.7% (18.8% on a same-branch basis) to $5 billion. The adjusted gross margin increased 130 bps to 29.7%. The adjusted operating margin also grew 130 bps to 16.1%. Adjusted EBITA grew 55.2% to $940.6 million and the EBITDA margin expanded 140 bps.
Financial Update
At 2022-end, cash and cash equivalents were $240.1 million, up from $139.8 million at 2021-end. Long-term debt was $1.42 billion, down from $1.45 billion at 2021-end. In 2022, net cash provided by operating activities was $495.8 million, up from $403 million in the year-ago period.
In 2022, BLD repurchased 1,390,667 shares for $250 million.
2023 View
TopBuild expects sales between $4.7 billion and $4.9 billion. The estimated figure indicates a decrease from $5 billion reported in 2022. Adjusted EBITDA is projected within $820-$910 million. This suggests a decline from $940.6 million reported in 2022.
Zacks Rank & Recent Construction Releases
TopBuild currently carries a Zacks Rank #4 (Sell).
Gibraltar Industries, Inc. (ROCK - Free Report) reported impressive earnings in the fourth quarter of 2022. Earnings not only surpassed the Zacks Consensus Estimate but also increased on a year-over-year basis.
ROCK reported adjusted earnings of 72 cents per share, which topped the Zacks Consensus Estimate of 71 cents by 1.4% and increased 28.6% year over year from 56 cents. This was driven by strong contributions from the Renewables and Infrastructure segments, backed by material cost alignment, field operations efficiency, price management, business mix, 80/20 initiatives and the share repurchase program.
KBR, Inc. (KBR - Free Report) reported mixed fourth-quarter 2022 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
The increasing global importance of national security, energy security, energy transition and climate change have been acting as major tailwinds for KBR.
AECOM (ACM - Free Report) reported better-than-expected results for first-quarter fiscal 2023, where earnings and revenues surpassed the Zacks Consensus Estimate.
On a year-over-year basis, ACM’s bottom line declined despite top-line growth. The company’s strong top-line performance was backed by strong organic NSR growth.
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TopBuild (BLD) Q4 Earnings & Sales Beat Estimates, Stock Up
TopBuild Corp. (BLD - Free Report) reported solid results for fourth-quarter 2022. Its earnings and revenues surpassed the Zacks Consensus Estimate and improved significantly on a year-over-year basis. Solid contributions from all three end markets that BLD serves (residential, commercial and industrial), along with operational efficiency, drove the results.
Shares of TopBuild gained 3.6% during the trading session on Feb 23, 2023.
Robert Buck, president & CEO of TopBuild, stated, “TopBuild’s unique operating model continues to enable our ability to outperform in any environment. Since 2018, revenue has doubled, growing at a compounded annual rate of 20% and our adjusted EBITDA margin has expanded 690 basis points.”
TopBuild Corp. Price, Consensus and EPS Surprise
TopBuild Corp. price-consensus-eps-surprise-chart | TopBuild Corp. Quote
Inside the Headlines
The company’s adjusted earnings of $4.40 per share beat the consensus estimate of $4.02 by 9.5% and grew by a significant 41% from the prior-year figure.
Total net sales of $1.26 billion beat the consensus mark of $1.24 billion by 24% and increased 18.9% (14.2% on a same-branch basis) year over year. The rise was backed by improvements in all three end markets it serves.
Segmental Performance
Installation sales increased 21.4% year over year to $761.3 million. Acquisitions, volume and selling price added 0.8%, 12.4% and 8.2% to sales, respectively. The adjusted operating margin for the quarter expanded 170 basis points (bps) to 18.7%. The adjusted EBITDA margin improved 140 bps to 20.8% for the quarter.
Revenues of the Specialty Distribution segment grew 15.9% year over year to $563.1 million, driven by 11.5% growth in price and 9.5% from acquisitions. Volumes declined 5.1% year over year. The adjusted operating margin expanded 200 bps from the year-ago quarter’s level to 14.4%. Also, the adjusted EBITDA margin improved 170 bps to 16.7% for the quarter.
Operating Highlights
The adjusted gross margin of 29.7% expanded 160 bps year over year. Adjusted selling, general and administrative expenses, as a percentage of revenues, improved 40 bps to 13.5%. The adjusted operating margin expanded 200 bps from the year-ago period’s levels to 16.2%.
Adjusted EBITDA increased 30.4% from the year-ago quarter’s levels to $237.4 million. The adjusted EBITDA margin also improved 170 bps to 18.8% in the quarter.
2022 Highlights
Adjusted EPS was $17.11, reflecting a 57.7% increase from 2021. Sales were up 43.7% (18.8% on a same-branch basis) to $5 billion. The adjusted gross margin increased 130 bps to 29.7%. The adjusted operating margin also grew 130 bps to 16.1%. Adjusted EBITA grew 55.2% to $940.6 million and the EBITDA margin expanded 140 bps.
Financial Update
At 2022-end, cash and cash equivalents were $240.1 million, up from $139.8 million at 2021-end. Long-term debt was $1.42 billion, down from $1.45 billion at 2021-end. In 2022, net cash provided by operating activities was $495.8 million, up from $403 million in the year-ago period.
In 2022, BLD repurchased 1,390,667 shares for $250 million.
2023 View
TopBuild expects sales between $4.7 billion and $4.9 billion. The estimated figure indicates a decrease from $5 billion reported in 2022. Adjusted EBITDA is projected within $820-$910 million. This suggests a decline from $940.6 million reported in 2022.
Zacks Rank & Recent Construction Releases
TopBuild currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Gibraltar Industries, Inc. (ROCK - Free Report) reported impressive earnings in the fourth quarter of 2022. Earnings not only surpassed the Zacks Consensus Estimate but also increased on a year-over-year basis.
ROCK reported adjusted earnings of 72 cents per share, which topped the Zacks Consensus Estimate of 71 cents by 1.4% and increased 28.6% year over year from 56 cents. This was driven by strong contributions from the Renewables and Infrastructure segments, backed by material cost alignment, field operations efficiency, price management, business mix, 80/20 initiatives and the share repurchase program.
KBR, Inc. (KBR - Free Report) reported mixed fourth-quarter 2022 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
The increasing global importance of national security, energy security, energy transition and climate change have been acting as major tailwinds for KBR.
AECOM (ACM - Free Report) reported better-than-expected results for first-quarter fiscal 2023, where earnings and revenues surpassed the Zacks Consensus Estimate.
On a year-over-year basis, ACM’s bottom line declined despite top-line growth. The company’s strong top-line performance was backed by strong organic NSR growth.