Beacon Roofing Supply, Inc. (BECN - Free Report) reported record adjusted earnings (excluding the impact of non-recurring RSG acquisition-related cost) of 88 cents per share for fourth-quarter fiscal 2016, falling short of the Zacks Consensus Estimate of 91 cents. However, earnings increased 17% on a year-over-year basis. Strong volume growth within residential roofing and a significant improvement in gross margins were partially offset by declining organic sales of other two product lines.
Including acquisition-related items, the company reported a profit of 78 cents per share in the quarter compared with 61 cents in the prior-year quarter.
This distributor of residential and non-residential roofing materials posted record sales of $1.17 billion, indicating a 49% year-over-year surge. However, revenues missed the Zacks Consensus Estimate of $1.27 billion.
Year-over-year sales growth was led by contributions from all product lines of the company. Residential roofing product sales soared 63%, while non-residential roofing product sales gained 29.7%. Complementary product sales were up 47.8%. Organic sales increased 2.4% for the quarter.
Cost of goods sold increased 46% to $872 million. Gross profit was $302 million, up 58% from $192 million in the year-ago quarter. Gross margin expanded 140 basis points (bps) to 25.7%.
Operating expenses for the quarter improved 56% year over year to $206 million. Operating income in the quarter was $95.9 million, compared to $59 million in the prior-year quarter.
Fiscal 2016 Performance
Beacon Roofing Supply reported adjusted earnings of $2.10 per share for fiscal 2016 posted a 52% surge year over year. Earnings missed the Zacks Consensus Estimate of $2.13 but came within the management guidance range of $2.05–$2.15. Including onetime items, earnings in the fiscal was at $1.49 compared with $1.24 in the prior fiscal. Revenues increased 64% year over year to a record $4.127 billion. However, it fell short of the Zacks Consensus Estimate of $4.22 billion as well as the guidance of $4.2–$4.3 billion.
BEACON ROOFING Price, Consensus and EPS Surprise