/Builders%20Firstsource%20Inc%20billboard-by%20Ken%20Wolter%20via%20Shutterstock.jpg)
Irving, Texas-based Builders FirstSource, Inc. (BLDR) is the largest U.S. supplier of building products, prefabricated components, and value-added services for residential construction, repair, and remodeling. Valued at $19.2 billion by market cap, Builders FirstSource serves professional homebuilders, sub-contractors, remodelers, and consumers in the U.S.
The building products giant is set to release its fourth-quarter earnings before the market opens on Thursday, Feb. 20. Ahead of the event, analysts expect Builders FirstSource to report a non-GAAP profit of $2.19 per share, down 38.3% from $3.55 per share reported in the year-ago quarter. While the company has surpassed Wall Street’s earnings projections thrice over the past four quarters, it has missed the estimates on one other occasion. Its adjusted EPS for the last reported quarter declined 27.6% year-over-year to $3.07 missing the consensus estimates by a small margin.
For the full fiscal 2024, analysts expect Builders FirstSource to report an adjusted EPS of $11.53, down 21% from $14.59 in fiscal 2023. In fiscal 2025, its earnings are projected to grow nearly 3% year-over-year to $11.88 per share.
BLDR has observed a marginal gain of 87 basis points over the past 52 weeks, substantially lagging behind the S&P 500 Index’s ($SPX) 25.3% surge and the Industrial Select Sector SPDR Fund’s (XLI) 25.4% returns during the same time frame.
Builders FirstSource’s stock prices soared nearly 5% after the release of its Q3 results on Nov. 5. Due to lower organic revenues and commodity deflation, the company’s net sales dropped 6.7% year-over-year to $4.2 billion. However, the company maintained a strong gross margin of 32.8% for the quarter, completed six acquisitions, and remains confident in its ability to drive long-term growth.
Furthermore, the company’s operating cash flows for the quarter surged 12.4% year-over-year to $730 million, and its free cash flow increased by a robust 18% year-over-year to $634.7 million.
The consensus opinion on BLDR is strongly bullish, with an overall “Strong Buy” rating. Out of the 19 analysts covering the stock, 13 recommend “Strong Buy,” two suggest “Moderate Buy,” and four advise a “Hold” rating. Its mean price target of $199.37 indicates a 19.6% upside potential from current price levels.
