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Beacon Roofing Supply, Inc.

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Beacon Roofing’s second-quarter fiscal 2016 adjusted earnings of $0.03 per share improved from the year-ago quarter loss of $0.20. Beacon Roofing increased its revenues guidance to the range of $4.1 to $4.2 billion, while adjusted EPS is projected in the range of $2.00 to $2.10. The company will continue to focus on sales growth, gross margin stability and improving operating leverage. It stands to benefit from acquisitions, the Greenfield branch openings, and an increase in roofing and re-roofing demand. However, its strategy of acquiring distributors of roofing materials and complementary products has inherent risks. Moreover, a reduction in capital expenditure will hurt the company’s growth. Falling oil prices and a highly competitive industry also remain key concerns.

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