We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
In the last reported quarter, the company’s adjusted earnings topped the Zacks Consensus Estimate by 35.4% and increased 15.5% year over year. Net sales topped the consensus estimate by 2.8% but fell 6% from the year-ago quarter’s level.
The company’s earnings have topped the consensus mark in each of the trailing 18 quarters.
Trend in Estimate Revision
The Zacks Consensus Estimate for BLDR’s first quarter earnings is pegged at $1.63 per share, indicating a 58.2% decrease from the prior year’s reported figure of $3.90. Nonetheless, the estimated figure reflects an upward revision of 27 cents in the past 60 days. The consensus estimate for net sales is pegged at $3.59 billion, suggesting a 36.9% decline from the year-ago quarter’s reported figure of $5.68 billion.
Builders FirstSource’s first-quarter earnings and revenues are likely to have declined due to moderate housing demand and repair and remodeling activities. It has also been witnessing inflation and supply-related challenges with respect to some of its products.
This apart, the company highly focuses on organic growth and is expanding extensively across vast geographic boundaries. Due to this strategy, the company incurs higher operating expenses and other costs related to IT, productivity and digital investments. Moreover, volatility in the lumber market is likely to have put pressure on results for the to-be-reported quarter.
For first-quarter, BLDR expects net sales to range within $3.4-$3.7 billion. Adjusted EBITDA is expected to be between $400 million and $440 million. Adjusted EBITDA margin will likely range from 11.7-11.9%.
Nonetheless, its recent buyouts will most likely get reflected in its upcoming quarterly performance. BLDR has been leveraging growth through emphasis on cost management, operational excellence and productivity initiatives. Also, it has been focused on investing in innovation and enhancing digital solutions for customers. These positives are likely to have offset the above-mentioned woes to some extent.
What the Zacks Model Unveils
Our proven model does not conclusively 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. This is not the case here, as elaborated below.
Currently, it has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks Poised to Beat Estimates
Here are some stocks worth considering from the Zacks Retail-Wholesale space, as our model shows that they have the right combination of elements to beat on earnings this season.
Yum! Brands, Inc. (YUM - Free Report) currently has an Earnings ESP of +0.98% and a Zacks Rank #3.
Shares of Yum! Brands have gained 17% in the past year. YUM has a trailing four-quarter negative earnings surprise of 1.1%, on average.
WEN’s earnings beat the consensus mark in three of the last four quarters and missed once. It has a trailing four-quarter earnings surprise of 4.5%, on average. Earnings for the to-be-reported quarter are expected to increase 17.7% year over year.
Shake Shack Inc. (SHAK - Free Report) has an Earnings ESP of +2.30% and a Zacks Rank #2.
Shares of Shake Shack have declined 10.1% in the past year. SHAK’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 39.8%, on average.
Image: Bigstock
What to Note Ahead of Builders FirstSource (BLDR) Q1 Earnings
Builders FirstSource, Inc. (BLDR - Free Report) is slated to report first-quarter 2023 results on May 3, before the opening bell.
In the last reported quarter, the company’s adjusted earnings topped the Zacks Consensus Estimate by 35.4% and increased 15.5% year over year. Net sales topped the consensus estimate by 2.8% but fell 6% from the year-ago quarter’s level.
The company’s earnings have topped the consensus mark in each of the trailing 18 quarters.
Trend in Estimate Revision
The Zacks Consensus Estimate for BLDR’s first quarter earnings is pegged at $1.63 per share, indicating a 58.2% decrease from the prior year’s reported figure of $3.90. Nonetheless, the estimated figure reflects an upward revision of 27 cents in the past 60 days. The consensus estimate for net sales is pegged at $3.59 billion, suggesting a 36.9% decline from the year-ago quarter’s reported figure of $5.68 billion.
Builders FirstSource, Inc. Price and EPS Surprise
Builders FirstSource, Inc. price-eps-surprise | Builders FirstSource, Inc. Quote
Factors to Note
Builders FirstSource’s first-quarter earnings and revenues are likely to have declined due to moderate housing demand and repair and remodeling activities. It has also been witnessing inflation and supply-related challenges with respect to some of its products.
This apart, the company highly focuses on organic growth and is expanding extensively across vast geographic boundaries. Due to this strategy, the company incurs higher operating expenses and other costs related to IT, productivity and digital investments. Moreover, volatility in the lumber market is likely to have put pressure on results for the to-be-reported quarter.
For first-quarter, BLDR expects net sales to range within $3.4-$3.7 billion. Adjusted EBITDA is expected to be between $400 million and $440 million. Adjusted EBITDA margin will likely range from 11.7-11.9%.
Nonetheless, its recent buyouts will most likely get reflected in its upcoming quarterly performance. BLDR has been leveraging growth through emphasis on cost management, operational excellence and productivity initiatives. Also, it has been focused on investing in innovation and enhancing digital solutions for customers. These positives are likely to have offset the above-mentioned woes to some extent.
What the Zacks Model Unveils
Our proven model does not conclusively 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. This is not the case here, as elaborated below.
Currently, it has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks Poised to Beat Estimates
Here are some stocks worth considering from the Zacks Retail-Wholesale space, as our model shows that they have the right combination of elements to beat on earnings this season.
Yum! Brands, Inc. (YUM - Free Report) currently has an Earnings ESP of +0.98% and a Zacks Rank #3.
Shares of Yum! Brands have gained 17% in the past year. YUM has a trailing four-quarter negative earnings surprise of 1.1%, on average.
The Wendy's Company (WEN - Free Report) currently has an Earnings ESP of +4.48% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
WEN’s earnings beat the consensus mark in three of the last four quarters and missed once. It has a trailing four-quarter earnings surprise of 4.5%, on average. Earnings for the to-be-reported quarter are expected to increase 17.7% year over year.
Shake Shack Inc. (SHAK - Free Report) has an Earnings ESP of +2.30% and a Zacks Rank #2.
Shares of Shake Shack have declined 10.1% in the past year. SHAK’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 39.8%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.