Builders FirstSource Gains On Strong Q1 Earnings

Builders FirstSource Inc BLDR reported first-quarter FY23 sales decline of 31.7% year-on-year to $3.88 billion, beating the analyst consensus estimate of $3.58 billion.

• The sales fall was driven by declining single-family starts and commodity deflation, partially offset by growth from acquisitions and one additional selling day.
• • Gross profit decreased 25.2% to $1.4 billion, and the profit margin expanded 300 basis points to 35.3%.
  • Selling, general, and administrative expenses dropped 6.6% to $904.2 million.
  • Adjusted EBITDA decreased 36.9% Y/Y to $631.7 million, with the margin declining by 130 basis points to 16.3%.
  • Adjusted EPS of $2.96 beat the analyst consensus of $1.51.
  • The company held $144.4 million in cash and equivalents as of March 31, 2023. Cash provided by operating activities for the quarter totaled $654.4 million, with a free cash flow of $554.5 million.
  • The company repurchased 7.5 million shares of common stock at an average price of $83.17 for $627.6 million.
  • Outlook: Builders FirstSource sees Q2 sales of $4 billion - $4.2 billion against the consensus of $4.3 billion.
  • It sees Q2 adjusted EBITDA of $525 million - $575 million with a margin of 13.1% - 13.7%.
  • It expects FY23 capital expenditure of $325 million - $375 million.
  • Price Action: BLDR shares are trading higher by 11.3% at $106 on the last check Wednesday.

  Image courtesy of Builders FirstSource