Builders FirstSource Q3: EPS Beat, Revenue Drop, Housing Market Woes & More

Builders FirstSource, Inc. BLDR shares are trading higher on Tuesday.

The company reported third-quarter adjusted earnings per share of $3.07, beating the street view of $2.98. Quarterly revenues of $4.23 billion (down 6.7%) missed the analyst consensus estimate of $4.45 billion.

The company reported a 210 basis point drop in gross profit margin to 32.8%, largely due to ongoing normalization in Multi-Family and core organic sectors.

Related: Builders FirstSource Taps CFO Peter Jackson For Top Role As CEO Dave Rush Plans Retirement

Net income fell 36.9% to $284.8 million, with net income as a percentage of sales dropping to 6.7%.

Adjusted EBITDA decreased 23% to $626.5 million, driven by lower gross profit, though partially offset by reduced operating expenses. The adjusted EBITDA margin fell 310 basis points to 14.8%, but has remained in the mid-teens or higher for 14 consecutive quarters.

Pete Beckmann, incoming CFO of Builders FirstSource, added, “We delivered resilient results during the third quarter despite a choppy housing market and the reduced value of an average start by leaning into the pillars of our strategy and operating model.”

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Liquidity as of September 30, was approximately $2 billion, consisting of $1.7 billion in net borrowing availability under the revolving credit facility and $0.3 billion of cash on hand.

Outlook: Builders FirstSource has revised its full-year 2024 sales guidance, lowering the range from $16.40 billion – $17.20 billion to $16.25 billion – $16.55 billion, compared to the $16.85 billion analyst estimate.

Price Action: BLDR shares are trading higher by 5.83% to $182.29 at last check Tuesday.

Image via David McBee/ Pexels

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