Investors Eye on Builders FirstSource: Key Metrics and Valuation Analysis

Builders FirstSource (BLDR) has been attracting significant attention from Zacks.com visitors lately, and it's not hard to see why. As a construction supply company, BLDR's performance is influenced by various factors that can affect its near-term performance. Let's delve into some of these factors.

Earnings Estimate Revisions

At Zacks, we prioritize evaluating changes in a company's earnings projections. This is because we believe that a stock's fair value is determined by the present value of its future earnings stream. For Builders FirstSource, the current quarter's earnings estimate is $2.37 per share, indicating a decline of 32.3% from the year-ago quarter. The Zacks Consensus Estimate has remained unchanged over the last 30 days. For the current fiscal year, the consensus earnings estimate of $8.54 points to a decrease of 26.1% from the prior year, with this estimate remaining unchanged over the last 30 days. However, for the next fiscal year, the consensus earnings estimate of $10.02 indicates an increase of 17.4% from what Builders FirstSource is expected to report a year ago.

Revenue Growth Forecast

While earnings growth is a key indicator of a company's financial health, it's important to consider a company's potential revenue growth as well. In the case of Builders FirstSource, the consensus sales estimate for the current quarter is $4.29 billion, indicating a year-over-year change of -3.8%. The estimates for the current and next fiscal years are $16.34 billion and $17 billion, respectively, which point to changes of -0.4% and +4%.

Last Reported Results and Surprise History

Builders FirstSource reported revenues of $3.66 billion in the last reported quarter, representing a year-over-year change of -6%. EPS for the same period was $1.51, compared to $2.65 a year ago. Compared to the Zacks Consensus Estimate of $3.69 billion, the reported revenues were a surprise of -0.78%. The EPS surprise was +0.67%. Over the last four quarters, Builders FirstSource surpassed consensus EPS estimates three times and topped consensus revenue estimates twice.

Valuation

No investment decision can be efficient without considering a stock's valuation. Builders FirstSource is graded B on the Zacks Value Style Score, indicating that it is trading at a discount to its peers. This suggests that the stock may offer some value for investors looking for opportunities in the construction supply industry.

Conclusion

The facts discussed here and other information on Zacks.com can help determine whether or not it's worthwhile paying attention to market buzz about Builders FirstSource. However, its Zacks Rank #4 suggests that it may underperform the broader market in the near term. Nonetheless, for investors looking for opportunities in the construction supply industry, Builders FirstSource could be a stock to watch out for.

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