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Beacon's (BECN) May Daily Sales Improve as Economies Reopen
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Beacon Roofing Supply, Inc. (BECN - Free Report) has been experiencing improved demand as the United States reopens stores and eases restrictions associated with the COVID-19 pandemic. The company highlighted that its quarter-to-date performance has exceeded expectations amid the COVID-19 pandemic, backed by heightened focus on generating operating leverage with the revival of sales.
Key Takeaways
Beacon’s May daily sales improved considerably on a sequential basis. May daily sales declined in low-single digits compared with April’s 20% year-over-year decline. Its average daily sales for May 2020 improved sequentially each week, as economies are re-opening and the company is beginning to return to more normal seasonality for the business.
Last month, Beacon generated low-single digit year-over-year daily sales growth in geographies that witnessed limited restrictions amid the pandemic. In the 10 jurisdictions wherein the business was severely impacted by the virus, daily sales grew materially in May on a sequential basis, as states begin to loosen restrictions. In those 10 areas, on a year-over-year basis, May’s daily sales were down approximately 11% compared with the 45% year-over-year decline experienced in April.
Julian Francis, Beacon’s president and chief executive officer said, “I am particularly pleased with the improvement in daily sales we experienced in May versus April’s virus induced trough. Even in the metropolitan areas still limiting construction activity, we have seen significant improvement as economies begin to re-open. The speed and decisiveness of our cost and liquidity actions over the past three months gives me great confidence in our ability to emerge from COVID-19 a stronger company."
Share Price Performance
Beacon, which belongs to the Zacks Building Products - Retail industry, has been performing pretty well of late. Its shares have gained more than 29.6% in the past month, outperforming the industry’s rally of 10.5%.
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Beacon's (BECN) May Daily Sales Improve as Economies Reopen
Beacon Roofing Supply, Inc. (BECN - Free Report) has been experiencing improved demand as the United States reopens stores and eases restrictions associated with the COVID-19 pandemic. The company highlighted that its quarter-to-date performance has exceeded expectations amid the COVID-19 pandemic, backed by heightened focus on generating operating leverage with the revival of sales.
Key Takeaways
Beacon’s May daily sales improved considerably on a sequential basis. May daily sales declined in low-single digits compared with April’s 20% year-over-year decline. Its average daily sales for May 2020 improved sequentially each week, as economies are re-opening and the company is beginning to return to more normal seasonality for the business.
Last month, Beacon generated low-single digit year-over-year daily sales growth in geographies that witnessed limited restrictions amid the pandemic. In the 10 jurisdictions wherein the business was severely impacted by the virus, daily sales grew materially in May on a sequential basis, as states begin to loosen restrictions. In those 10 areas, on a year-over-year basis, May’s daily sales were down approximately 11% compared with the 45% year-over-year decline experienced in April.
Julian Francis, Beacon’s president and chief executive officer said, “I am particularly pleased with the improvement in daily sales we experienced in May versus April’s virus induced trough. Even in the metropolitan areas still limiting construction activity, we have seen significant improvement as economies begin to re-open. The speed and decisiveness of our cost and liquidity actions over the past three months gives me great confidence in our ability to emerge from COVID-19 a stronger company."
Share Price Performance
Beacon, which belongs to the Zacks Building Products - Retail industry, has been performing pretty well of late. Its shares have gained more than 29.6% in the past month, outperforming the industry’s rally of 10.5%.
The company — which shares space with BMC Stock Holdings, Inc. , Builders FirstSource, Inc. (BLDR - Free Report) and GMS Inc. (GMS - Free Report) in the same industry and currently carries a Zacks Rank #3 (Hold) — is expected to gain further with the revival of the housing market. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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