Builders FirstSource, Inc. Earnings Cheat Sheet: Loss Narrows but Misses Estimates

The Cheat Sheet

Builders FirstSource, Inc. reported its results for the second quarter. Builders FirstSource, Inc. is a supplier and manufacturer of structural and related building products for residential new construction.

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Builders FirstSource Earnings Cheat Sheet for the Second Quarter

Results: Loss narrowed to $15.5 million (loss of 16 cents per diluted share) from $19 million (loss of 20 cents per share) in the same quarter a year earlier.

Revenue: Fell 2.4% to $206.4 million from the year earlier quarter.

Actual vs. Wall St. Expectations: BLDR fell short of the mean analyst estimate of a loss of 11 cents per share. Analysts were expecting revenue of $206.8 million.

Quoting Management: “We are very encouraged by our second quarter results, as our near break-even Adjusted EBITDA was our best operating performance since the third quarter of 2007,” said Floyd Sherman, Builders FirstSource Chief Executive Officer. “We finished the current quarter with sales of $206.4 million, down just 2.4percent compared to sales of $211.5million in the second quarter of 2010. While U.S. single-family housing starts and average commodity prices were down 13.1percent and 20.8percent, respectively, over this same time period, our sales volume was up slightly, which we believe is indicative of significant market share gains during the quarter.”

Key Stats:

The company fell short of forecasts after beating estimates in the previous two quarters. In the first quarter, it topped the mark by 4 cents, and in the fourth quarter of the last fiscal year, it was ahead by 4 cents.

Revenue fell last quarter after seeing a rise the quarter before. Revenue dropped 0.9% to $162.8 million in the first quarter from the year earlier.

The company’s cost of sales fell 5.3% from a year earlier to $163.6 million. Last quarter, cost of sales was 79.3% or revenue versus 81.7% a year earlier.

Competitors to Watch:  The Home Depot, Inc. , Lowe’s Companies, Inc. , Lumber Liquidators Hldgs., Inc. , BlueLinx Holdings Inc. , Tractor Supply Company .

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(Source: Xignite Financials)

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