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.
Beacon Roofing (BECN) Q2 Loss In Line, Margins Increase Y/Y
Read MoreHide Full Article
Beacon Roofing Supply, Inc. (BECN - Free Report) reported second-quarter fiscal 2020 results, wherein the bottom line met the Zacks Consensus Estimate and improved from the prior-year quarter. The improved results were mainly backed by strong sales (particularly until mid-March), stable margins and cost-control measures.
Despite being declared an essential business in all markets served, the company witnessed significant disruption post the declaration of the coronavirus outbreak as pandemic in mid-March. In April, daily sales declined nearly 20% from the prior-year period.
Nonetheless, it is looking for opportunities to improve productivity and enhance customer service through its industry-leading digital platform. Also, the company has implemented various cost-saving actions in response to the COVID-19 outbreak.
Quarter in Detail
Beacon Roofing reported adjusted loss of 27 cents per share, narrower than the year-ago loss of 45 cents per share.
Beacon Roofing Supply Inc Price, Consensus and EPS Surprise
Net sales of $1.46 billion marginally surpassed the consensus mark of $1.45 billion. The figure also grew 2.1% year over year, backed by certain contractor conversion initiatives, national account sales and continued support from industry-leading digital platform. However, these positives were partially offset by comparatively lower hurricane-related demand.
Residential roofing product sales and complementary product sales declined 1.3% and 0.4%, respectively. However, non-residential roofing product sales improved 2.6% year over year.
Daily sales were up 0.5% year over year. The metric was up 5% year over year before the COVID-19 outbreak in mid-March. Non-residential roofing daily sales grew 10.8% from the prior year.
Operating Highlights
Cost of goods sold (contributing 76.5% to net sales) totaled $1,116.1 million, up 2% year over year. Gross margin expanded 10 basis points (bps) to 23.5%.
Adjusted EBITDA surged 42% year over year and margin grew 80 bps to 2.7%, reflecting strong operating cost-control measures.
Segment Details
Sales in the Residential roofing product segment (contributing 40.5% to total sales) fell 1.3% year over year to $591.2 million. That in Complementary products (35.3%) slipped 0.4% year over year to $514.3 million. Nonetheless, sales in the Non-residential roofing product unit (24.2%) increased 12.6% year over year to $353 million.
Cash Position
As of Mar 31, 2020, Beacon Roofing had cash and cash equivalents of $781.2 million, significantly up from $72.3 million at fiscal 2019-end. Long-term debt was $2.5 billion, almost in line with the last reported quarter and the year-ago figure.
Cash used in operations was reported at $150.8 million in the first six months of fiscal 2020 compared with $242.1 million a year ago.
Zacks Rank & Peer Release
Beacon Roofing — which shares space with Builders FirstSource, Inc. (BLDR - Free Report) and BMC Stock Holdings, Inc. in the Zacks Building Products – Retail industry — currently carries a Zacks Rank #5 (Strong Sell).
Fastenal Company (FAST - Free Report) reported impressive first-quarter 2020 results. The top and bottom lines surpassed the respective Zacks Consensus Estimate despite persistent decline in activity levels. Moreover, activity levels weakened significantly in the second half of March, in response to societal actions that were undertaken to address the coronavirus pandemic.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Beacon Roofing (BECN) Q2 Loss In Line, Margins Increase Y/Y
Beacon Roofing Supply, Inc. (BECN - Free Report) reported second-quarter fiscal 2020 results, wherein the bottom line met the Zacks Consensus Estimate and improved from the prior-year quarter. The improved results were mainly backed by strong sales (particularly until mid-March), stable margins and cost-control measures.
Despite being declared an essential business in all markets served, the company witnessed significant disruption post the declaration of the coronavirus outbreak as pandemic in mid-March. In April, daily sales declined nearly 20% from the prior-year period.
Nonetheless, it is looking for opportunities to improve productivity and enhance customer service through its industry-leading digital platform. Also, the company has implemented various cost-saving actions in response to the COVID-19 outbreak.
Quarter in Detail
Beacon Roofing reported adjusted loss of 27 cents per share, narrower than the year-ago loss of 45 cents per share.
Beacon Roofing Supply Inc Price, Consensus and EPS Surprise
Beacon Roofing Supply Inc price-consensus-eps-surprise-chart | Beacon Roofing Supply Inc Quote
Net sales of $1.46 billion marginally surpassed the consensus mark of $1.45 billion. The figure also grew 2.1% year over year, backed by certain contractor conversion initiatives, national account sales and continued support from industry-leading digital platform. However, these positives were partially offset by comparatively lower hurricane-related demand.
Residential roofing product sales and complementary product sales declined 1.3% and 0.4%, respectively. However, non-residential roofing product sales improved 2.6% year over year.
Daily sales were up 0.5% year over year. The metric was up 5% year over year before the COVID-19 outbreak in mid-March. Non-residential roofing daily sales grew 10.8% from the prior year.
Operating Highlights
Cost of goods sold (contributing 76.5% to net sales) totaled $1,116.1 million, up 2% year over year. Gross margin expanded 10 basis points (bps) to 23.5%.
Adjusted EBITDA surged 42% year over year and margin grew 80 bps to 2.7%, reflecting strong operating cost-control measures.
Segment Details
Sales in the Residential roofing product segment (contributing 40.5% to total sales) fell 1.3% year over year to $591.2 million. That in Complementary products (35.3%) slipped 0.4% year over year to $514.3 million. Nonetheless, sales in the Non-residential roofing product unit (24.2%) increased 12.6% year over year to $353 million.
Cash Position
As of Mar 31, 2020, Beacon Roofing had cash and cash equivalents of $781.2 million, significantly up from $72.3 million at fiscal 2019-end. Long-term debt was $2.5 billion, almost in line with the last reported quarter and the year-ago figure.
Cash used in operations was reported at $150.8 million in the first six months of fiscal 2020 compared with $242.1 million a year ago.
Zacks Rank & Peer Release
Beacon Roofing — which shares space with Builders FirstSource, Inc. (BLDR - Free Report) and BMC Stock Holdings, Inc. in the Zacks Building Products – Retail industry — currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fastenal Company (FAST - Free Report) reported impressive first-quarter 2020 results. The top and bottom lines surpassed the respective Zacks Consensus Estimate despite persistent decline in activity levels. Moreover, activity levels weakened significantly in the second half of March, in response to societal actions that were undertaken to address the coronavirus pandemic.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>