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Valued at a market cap of $13.3 billion, Builders FirstSource, Inc. (BLDR) manufactures and supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers. The Irving, Texas-based company is scheduled to announce its fiscal Q1 earnings for 2025 before the market opens on Thursday, May 1.
Ahead of this event, analysts expect this building products & equipment company to report a profit of $1.35 per share, down 49.1% from $2.65 per share in the year-ago quarter. The company has exceeded Wall Street's earnings estimates in three of the last four quarters, while missing on another occasion. In Q4 2024, BLDR’s EPS of $2.31 outpaced the forecasted figure by 3.1%.
For fiscal 2025, analysts expect BLDR to report a profit of $9.44 per share, down 18.3% from $11.56 in fiscal 2024. Nevertheless, its EPS is expected to rebound in fiscal 2026 and grow by 14.3% year over year to $10.79.
BLDR has declined 37.4% over the past 52 weeks, considerably underperforming both the S&P 500 Index's ($SPX) 6% rise, and the Industrial Select Sector SPDR Fund’s (XLI) 2.5% uptick over the same time frame.
On Feb. 20, BLDR’s shares closed down marginally following its mixed Q4 earnings release. The company posted revenue of $3.8 billion, which declined 8% from the year-ago quarter and missed the consensus estimates by 2.3%. An 8.8% fall in core organic sales, driven by declines across various end markets, led to its top-line miss. Moreover, a drop in gross and operating margins resulted in a 34.9% year-over-year decrease in its adjusted EPS to $2.31. However, the bottom-line figure surpassed Wall Street’s expectations by 3.1%, which might have provided some relief to investors and helped limit the stock’s decline.
Looking ahead to fiscal 2025, BLDR expects net sales to be in the range of $16.5 billion to $17.5 billion, and projects adjusted EBITDA to be between $1.9 billion and $2.3 billion.
Wall Street analysts are highly optimistic about BLDR’s stock, with a "Strong Buy" rating overall. Among 19 analysts covering the stock, 13 recommend "Strong Buy," two indicate “Moderate Buy,” and four suggest “Hold.” The mean price target for BLDR is $166.84, which indicates a notable 42.3% potential upside from the current levels.
On the date of publication, Neharika Jain 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.
