Beacon Roofing Supply, Inc. (BECN - Free Report) reported adjusted earnings of 84 cents per share for second-quarter fiscal 2017, falling behind the Zacks Consensus Estimate of 90 cents. However, earnings increased 9% on a year-over-year basis positively impacted by sustained strength in residential roofing, strong complementary products demand and attractive operating cost leverage.
Including acquisition-related items, the company reported a profit of 73 cents per share in the quarter compared with 68 cents in the prior-year quarter.
This distributor of residential and non-residential roofing materials posted record sales of $1.214 billion, exhibiting a 5.3% year-over-year rise, also marked the fourth consecutive quarter of sales exceeding $1 billion. Revenues however missed the Zacks Consensus Estimate of $1.27 billion.
Residential roofing product sales increased 8%, while non-residential roofing product sales dropped 4.7%. Complementary product sales were up 15.7%. Existing markets same day sales, excluding acquisitions, increased 2.2% for the quarter.
Cost of goods sold increased 5.2% to $916 million. Gross profit was $298 million, up 6% from $282 million in the year-ago quarter. Gross margin remained flat at 24.5%.
Operating expenses for the quarter increased 8% year over year to $213 million. Operating income in the quarter was $85 million, compared with $78 million in the prior-year quarter.
Beacon Roofing Supply, Inc. Price, Consensus and EPS Surprise