Latest news with #BLDR
Yahoo
17-05-2025
- Business
- Yahoo
Builders FirstSource, Inc. (BLDR) is Attracting Investor Attention: Here is What You Should Know
Builders FirstSource (BLDR) is one of the stocks most watched by visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Over the past month, shares of this construction supply company have returned +0.9%, compared to the Zacks S&P 500 composite's +9.8% change. During this period, the Zacks Building Products - Retail industry, which Builders FirstSource falls in, has gained 1.6%. The key question now is: What could be the stock's future direction? While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making. Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Builders FirstSource is expected to post earnings of $2.37 per share for the current quarter, representing a year-over-year change of -32.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -21.2%. For the current fiscal year, the consensus earnings estimate of $8.53 points to a change of -26.2% from the prior year. Over the last 30 days, this estimate has changed -13.9%. For the next fiscal year, the consensus earnings estimate of $9.96 indicates a change of +16.7% from what Builders FirstSource is expected to report a year ago. Over the past month, the estimate has changed -13.3%. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Builders FirstSource is rated Zacks Rank #4 (Sell). The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth. In the case of Builders FirstSource, the consensus sales estimate of $4.29 billion for the current quarter points to a year-over-year change of -3.8%. The $16.34 billion and $17 billion estimates for the current and next fiscal years indicate changes of -0.4% and +4%, respectively. Builders FirstSource reported revenues of $3.66 billion in the last reported quarter, representing a year-over-year change of -6%. EPS of $1.51 for the same period compares with $2.65 a year ago. Compared to the Zacks Consensus Estimate of $3.69 billion, the reported revenues represent a surprise of -0.78%. The EPS surprise was +0.67%. Over the last four quarters, Builders FirstSource surpassed consensus EPS estimates three times. The company could not beat consensus revenue estimates in any of the last four quarters. No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is. The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Builders FirstSource is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about Builders FirstSource. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Builders FirstSource, Inc. (BLDR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
15-05-2025
- Business
- Yahoo
BLDR Q1 Earnings Call: Management Lowers Guidance Amid Housing Market Headwinds
Building materials company Builders FirstSource (NYSE:BLDR) met Wall Street's revenue expectations in Q1 CY2025, but sales fell by 6% year on year to $3.66 billion. On the other hand, the company's full-year revenue guidance of $16.55 billion at the midpoint came in 0.9% below analysts' estimates. Its non-GAAP profit of $1.51 per share was 6.4% above analysts' consensus estimates. Is now the time to buy BLDR? Find out in our full research report (it's free). Revenue: $3.66 billion vs analyst estimates of $3.67 billion (6% year-on-year decline, in line) Adjusted EPS: $1.51 vs analyst estimates of $1.42 (6.4% beat) Adjusted EBITDA: $369.2 million vs analyst estimates of $377.5 million (10.1% margin, 2.2% miss) The company dropped its revenue guidance for the full year to $16.55 billion at the midpoint from $17 billion, a 2.6% decrease EBITDA guidance for the full year is $1.9 billion at the midpoint, below analyst estimates of $2.04 billion Operating Margin: 5%, down from 9.6% in the same quarter last year Free Cash Flow Margin: 0.9%, down from 5.8% in the same quarter last year Market Capitalization: $13.21 billion Builders FirstSource's first quarter results reflected persistent challenges across the housing construction market, as discussed by CEO Peter Jackson. Management attributed the year-on-year revenue decline to softer single-family and multifamily housing starts, lower average home values, and ongoing affordability issues for homebuyers. CFO Pete Beckmann highlighted operational adjustments, such as capacity realignment and expense controls, to offset the impact of reduced demand. Jackson emphasized continued investments in digital tools and value-added offerings, aiming to strengthen customer relationships and improve productivity, even as overall sales volumes declined. Discussing the company's outlook, management cited ongoing uncertainty in both the macroeconomic and industry environments. Beckmann explained that the reduced full-year revenue and EBITDA guidance was driven by weaker expectations for single-family housing starts, moderating multifamily activity, and anticipated tariff impacts on imported raw materials. Jackson admitted, 'We're not expecting a recovery in the broader market or from key customers,' and stressed that guidance assumes no substantial rebound in demand during the remainder of the year. Management described the outlook as largely seasonal, with growth in the second half dependent on acquisition contributions rather than a market recovery. Builders FirstSource's leadership discussed several operational and strategic themes impacting first quarter performance and future positioning. While headline revenue and margins fell, management focused on factors within their control and highlighted continued investments in core capabilities. Operational cost management: Management reported $17 million in productivity savings for the quarter, attributed to targeted supply chain initiatives, truss manufacturing efficiency, and improved fleet management. These efforts are intended to maintain flexibility and profitability in a subdued demand environment. Digital tools adoption: The company's BFS digital platform continued to gain traction among smaller builders, generating $19 million in incremental sales for the quarter. Management expects digital sales adoption to accelerate, aiming for $200 million in additional sales for the full year as the platform expands. Acquisition activity: Builders FirstSource completed two acquisitions in the quarter—Alpine Lumber and O.C. Cluss—expanding its presence in Colorado, New Mexico, and parts of the Northeast. Management described these deals as consistent with the company's strategy to grow value-added offerings and geographic reach. Product and market mix trends: Value-added product sales, particularly in multifamily, faced notable declines as activity normalized from prior-year highs. Management noted ongoing shifts toward smaller, simpler homes and lower-cost product categories in response to affordability pressures, affecting both volume and margin mix. Tariff and commodity headwinds: Leadership outlined expected annual tariff cost impacts of $175 million to $250 million, primarily on imported raw materials. While some costs are expected to be passed through to customers, management cautioned that the precise market impact remains uncertain and is not fully reflected in current guidance. Looking ahead, Builders FirstSource's management expects ongoing housing market softness, efforts to boost operational efficiency, and the impact of tariffs to shape performance for the remainder of the year. Housing demand uncertainty: Guidance assumes continued below-normal single-family starts and persistent weakness in multifamily activity, with management anticipating no significant rebound in new construction volumes during 2025. Operational efficiency and cost control: The company aims to deliver $70 million to $90 million in productivity savings for the year, relying on process optimization, technology investments (such as ERP rollout), and disciplined expense management to support margins amid lower volumes. Tariff and commodity cost pressures: Management anticipates tariffs on imported raw materials will create additional cost headwinds, and while some price increases may be passed to customers, there is uncertainty around the extent and timing of cost recovery, particularly as commodity prices fluctuate and builder affordability remains constrained. Matthew Bouley (Barclays): Asked about the company's approach to balancing market share versus gross margin in a declining housing market. Management stated they aim to defend share while maintaining disciplined pricing, expecting margins to drift lower but remain above most competitors. Michael Dahl (RBC Capital Markets): Questioned the sustainability of aggressive capital allocation given lower cash flows and higher leverage. Beckmann responded that the company will prioritize balance sheet strength and maintain its year-end leverage target, with M&A and buybacks evaluated opportunistically. Charles Perron-Piche (Goldman Sachs): Sought clarity on the impact of higher lumber prices and digital tool adoption targets. Management explained the product mix effect of commodity price changes and reiterated confidence in digital adoption via improved customer experience and targeted rollout. Trey Grooms (Stephens): Inquired about the company's appetite for further acquisitions and potential for network streamlining. Management said M&A activity will be limited to strategic opportunities and confirmed ongoing efforts to optimize the branch footprint in response to local market demand. Phil Ng (Jefferies): Asked about the company's ability to pass tariff-related cost increases to customers and the timeline for such impacts. Leadership responded that most tariffs should be passed through over time, but the exact market reaction and timing remain uncertain due to inventory dynamics and evolving policy. In the quarters ahead, the StockStory team will watch (1) trends in housing starts and builder sentiment as indicators for potential demand stabilization, (2) the pace and effectiveness of digital tool adoption among both smaller and larger builders, and (3) management's delivery of targeted productivity savings and cost containment in the face of continued market headwinds. The handling of tariff-related costs and the integration of recent acquisitions will also be important factors in tracking Builders FirstSource's execution. Builders FirstSource currently trades at a forward P/E ratio of 12.3×. In the wake of earnings, is it a buy or sell? The answer lies in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Yahoo
10-04-2025
- Business
- Yahoo
When Should You Buy Builders FirstSource, Inc. (NYSE:BLDR)?
Today we're going to take a look at the well-established Builders FirstSource, Inc. (NYSE:BLDR). The company's stock received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$174 at one point, and dropping to the lows of US$114. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Builders FirstSource's current trading price of US$125 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Builders FirstSource's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. According to our valuation model, Builders FirstSource seems to be fairly priced at around 9.1% below our intrinsic value, which means if you buy Builders FirstSource today, you'd be paying a fair price for it. And if you believe the company's true value is $137.29, then there isn't much room for the share price grow beyond what it's currently trading. Is there another opportunity to buy low in the future? Since Builders FirstSource's share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market. Check out our latest analysis for Builders FirstSource Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Builders FirstSource's earnings over the next few years are expected to increase by 23%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. Are you a shareholder? It seems like the market has already priced in BLDR's positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value? Are you a potential investor? If you've been keeping tabs on BLDR, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it's worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. If you'd like to know more about Builders FirstSource as a business, it's important to be aware of any risks it's facing. Every company has risks, and we've spotted 2 warning signs for Builders FirstSource you should know about. If you are no longer interested in Builders FirstSource, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
10-04-2025
- Business
- Yahoo
When Should You Buy Builders FirstSource, Inc. (NYSE:BLDR)?
Today we're going to take a look at the well-established Builders FirstSource, Inc. (NYSE:BLDR). The company's stock received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$174 at one point, and dropping to the lows of US$114. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Builders FirstSource's current trading price of US$125 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Builders FirstSource's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. According to our valuation model, Builders FirstSource seems to be fairly priced at around 9.1% below our intrinsic value, which means if you buy Builders FirstSource today, you'd be paying a fair price for it. And if you believe the company's true value is $137.29, then there isn't much room for the share price grow beyond what it's currently trading. Is there another opportunity to buy low in the future? Since Builders FirstSource's share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market. Check out our latest analysis for Builders FirstSource Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Builders FirstSource's earnings over the next few years are expected to increase by 23%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. Are you a shareholder? It seems like the market has already priced in BLDR's positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value? Are you a potential investor? If you've been keeping tabs on BLDR, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it's worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. If you'd like to know more about Builders FirstSource as a business, it's important to be aware of any risks it's facing. Every company has risks, and we've spotted 2 warning signs for Builders FirstSource you should know about. If you are no longer interested in Builders FirstSource, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
