Beacon Roofing Settles Litigation Against SRS Filed in 2014
Beacon Roofing Supply, Inc. BECN has reached a settlement agreement with SRS Distribution, Inc. Terms of the agreement remain undisclosed.
SRS Distribution (SRS) is a distributor of wholesale roofing products in the U.S. The litigation was filed by Beacon Roofing against SRS in 2014 in Miami-Dade County, Florida Circuit Court. The lawsuit remains pending against two former employees of SRS.
Beacon Roofing is poised to benefit from acquisitions, growth in residential and non-residential building construction activity. In addition, the company remains focused on organic growth. It is on the lookout for strong complementary product businesses to expand its product line and geographic reach.
Beacon Roofing Supply, Inc. Price
Beacon Roofing Supply, Inc. Price | Beacon Roofing Supply, Inc. Quote
For fiscal 2017, the company maintained its total revenue growth range of 3–7% for 2017, which projects 2–5% organic and 1–2% incremental contribution from acquisitions. The company anticipates adjusted earnings per share to be around $2.33 in the fiscal year.
Beacon Roofing is targeting around five to 10 total branch openings in fiscal 2017. Along with its branch opening strategy, the company will also focus on potential acquisitions. Growth in residential and non-residential building construction activity will also drive growth.
Over the past one year, Beacon Roofing has outperformed the Zacks classified Building Products-Retail/Wholesale sub-industry with respect to price performance. The stock gained around 14.1%, while the industry recorded 7% growth.
Beacon Roofing currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the sector include Rush Enterprises, Inc. RUSHA, Tech Data Corp. TECD and Papa Murphy's Holdings, Inc. FRSH. All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Rush Enterprises has delivered an average earnings surprise of 12.78% in the trailing four quarters. Tech Data and Papa Murphy's Holdings also delivered average positive earnings surprise of 8.73% and 147.69%, respectively, in the past four quarters.
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