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Builders FirstSource, Inc. (BLDR), a leading player in the building materials and construction services sector, boasts a market cap of $19.4 billion. The Irving, Texas-based company delivers a wide array of products and solutions for professional homebuilders and remodelers throughout the U.S. The company is slated to announce its fiscal Q2 earnings results before the market opens on Tuesday, Aug. 6.
Ahead of this event, analysts expect BLDR to report a profit of $3.16 per share, an 18.8% decline from $3.89 per share in the year-ago quarter. The company has consistently exceeded Wall Street's earnings expectations in the past four quarters. The company reported an EPS of $2.65 in the most recent quarter, exceeding the consensus EPS estimate by a 9.5% margin.
For fiscal 2024, analysts expect BLDR to report EPS of $12.93, marking a decline of 11.4% from $14.59 in fiscal 2023. However, EPS is expected to rebound in fiscal 2025, with an anticipation of an 8.7% year-over-year jump, reaching $14.06.
In 2024, shares of Builders FirstSource have lagged behind the broader markets, falling roughly 1.9%, while the broader S&P 500 Index ($SPX) has gained 13.2%, and the S&P 500 Industrial Sector SPDR (XLI) has returned 10.3% on a YTD basis.
Shares of Builders FirstSource slipped a notable 19.1% on May 7, following a substantial 10.5% year-over-year decline in Q1 profit, which was impacted by increased expenses related to recent acquisitions and a shift in demand towards lower-margin products. Although the company beat sales estimates with $3.89 billion in net sales, the significant decline in net income and reduced profit margins spurred the sharp drop in share value.
Analysts' consensus view on BLDR stock remains cautiously optimistic, with a "Moderate Buy" rating overall. Out of 15 analysts covering the stock, nine recommend a "Strong Buy," one "Moderate Buy," and five give a "Hold" rating. This configuration is less bullish than three months ago, with 11 analysts suggesting a "Strong Buy".
The average analyst price target for BLDR is $195.60, suggesting a potential upside of 23.2% from the current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
