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In the last reported quarter, the company’s adjusted earnings and net sales topped the Zacks Consensus Estimate by 31.5% and 3.4%, respectively. Earnings increased 10.6% but net sales declined 4.7% from the year-ago quarter.
The company’s earnings have topped the consensus mark in each of the trailing 22 quarters.
Trend in Estimate Revision
The Zacks Consensus Estimate for BLDR’s first-quarter earnings is pegged at $2.42 per share, indicating an 18.2% decrease from the prior year’s reported figure of $2.96. Nonetheless, the estimated figure reflects an upward revision from $2.41 in the past 30 days.
The consensus estimate for net sales is pinned at $3.81 billion, suggesting a 2% decline from the year-ago quarter’s reported figure.
Factors to Note
Builders FirstSource’s business is primarily dependent on new residential construction as well as repair and remodeling activities. Improving housing demand backed by the low supply of existing homes and stabilizing economy is expected to have aided its performance in the first quarter. However, a weaker multi-family market and persistently high mortgage rates are likely to have offset these positives.
Also, margins are likely to have compressed in the to-be-reported quarter due to existing inflationary pressure for the commodities product categories, labor woes, inclement weather in most of the first quarter, and other macroeconomic woes. The company has been witnessing product mix shift toward lower-margin commodity products over the past few quarters and expects to remain the same for the first quarter.
That said, BLDR’s focus on strategic acquisitions, digital solutions and productivity, as well as investments in innovative and value-added products, are likely to have aided the company to some extent.
Builders FirstSource is focused on cost-saving initiatives and implementing various plans for the same. Owing to this, the company is expected to provide greater resources to invest in growth, innovation and non-stop value creation for all its shareholders.
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.
Earnings ESP: The company has an Earnings ESP of +8.94%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: BLDR currently sports a Zacks Rank #4 (Sell).
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.
CAKE’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 3.3%. The company’s earnings for the to-be-reported quarter are expected to increase 3.3% year over year.
Portillo's Inc. (PTLO - Free Report) has an Earnings ESP of +4.76% and carries a Zacks Rank #3.
PTLO’s earnings beat estimates in two of the trailing four quarters and missed twice, the average surprise being 50%. The company’s earnings for the to-be-reported quarter are expected to be flat year over year.
Allbirds, Inc. (BIRD - Free Report) has an Earnings ESP of +1.56% and carries a Zacks Rank #3.
BIRD’s earnings beat estimates in two of the trailing four quarters and matched twice, the average surprise being 8.6%. The company’s earnings for the to-be-reported quarter are expected to be flat year over year.
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What to Note Ahead of Builders FirstSource's (BLDR) Q1 Earnings
Builders FirstSource, Inc. (BLDR - Free Report) is slated to report first-quarter 2024 results on May 7, before the opening bell.
In the last reported quarter, the company’s adjusted earnings and net sales topped the Zacks Consensus Estimate by 31.5% and 3.4%, respectively. Earnings increased 10.6% but net sales declined 4.7% from the year-ago quarter.
The company’s earnings have topped the consensus mark in each of the trailing 22 quarters.
Trend in Estimate Revision
The Zacks Consensus Estimate for BLDR’s first-quarter earnings is pegged at $2.42 per share, indicating an 18.2% decrease from the prior year’s reported figure of $2.96. Nonetheless, the estimated figure reflects an upward revision from $2.41 in the past 30 days.
Builders FirstSource, Inc. Price and EPS Surprise
Builders FirstSource, Inc. price-eps-surprise | Builders FirstSource, Inc. Quote
The consensus estimate for net sales is pinned at $3.81 billion, suggesting a 2% decline from the year-ago quarter’s reported figure.
Factors to Note
Builders FirstSource’s business is primarily dependent on new residential construction as well as repair and remodeling activities. Improving housing demand backed by the low supply of existing homes and stabilizing economy is expected to have aided its performance in the first quarter. However, a weaker multi-family market and persistently high mortgage rates are likely to have offset these positives.
Also, margins are likely to have compressed in the to-be-reported quarter due to existing inflationary pressure for the commodities product categories, labor woes, inclement weather in most of the first quarter, and other macroeconomic woes. The company has been witnessing product mix shift toward lower-margin commodity products over the past few quarters and expects to remain the same for the first quarter.
That said, BLDR’s focus on strategic acquisitions, digital solutions and productivity, as well as investments in innovative and value-added products, are likely to have aided the company to some extent.
Builders FirstSource is focused on cost-saving initiatives and implementing various plans for the same. Owing to this, the company is expected to provide greater resources to invest in growth, innovation and non-stop value creation for all its shareholders.
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.
Earnings ESP: The company has an Earnings ESP of +8.94%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: BLDR currently sports a Zacks Rank #4 (Sell).
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.
Cheesecake Factory Incorporated (CAKE - Free Report) has an Earnings ESP of +0.36% and has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
CAKE’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 3.3%. The company’s earnings for the to-be-reported quarter are expected to increase 3.3% year over year.
Portillo's Inc. (PTLO - Free Report) has an Earnings ESP of +4.76% and carries a Zacks Rank #3.
PTLO’s earnings beat estimates in two of the trailing four quarters and missed twice, the average surprise being 50%. The company’s earnings for the to-be-reported quarter are expected to be flat year over year.
Allbirds, Inc. (BIRD - Free Report) has an Earnings ESP of +1.56% and carries a Zacks Rank #3.
BIRD’s earnings beat estimates in two of the trailing four quarters and matched twice, the average surprise being 8.6%. The company’s earnings for the to-be-reported quarter are expected to be flat year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.