NYSE$BLD

TopBuild Corp. · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

TopBuild's first quarter results for 2021 showed strong growth driven by residential and commercial businesses, with adjusted operating margins expanding in both TruTeam and Service Partners.

TopBuild reported a solid first quarter in 2021, with net sales increasing by 13.7% to $742.8 million. The company's operating margin was 12.9%, and adjusted net income reached $67.1 million, or $2.02 per diluted share. The results reflect strong growth in both residential and commercial businesses.

  • Net sales increased 13.7% to $742.8 million.
  • Gross margin expanded 30 basis points.
  • Operating margin was 12.9%, with an adjusted operating margin of 13.1%, up 230 basis points.
  • Adjusted net income was $67.1 million, or $2.02 per diluted share.

Headline financials

Total Revenue

$743M

Previous: $653M+13.7%
EPS (adj)

$2.02

Previous: $1.37+47.4%
Operating margin

12.9%

Previous: 10.7%+20.6%
Adjusted EBITDA margin

15.6%

Previous: 13.5%+15.6%
Capital Expenditures

-$12.3M

Previous: -$15.9M+22.7%
Free Cash Flow

$47.6M

Previous: $34.9M+36.4%
Net Income

$59.8M

Previous: $50.8M+17.9%
Operating Income

$95.9M

Previous: $70M+37.0%
Gross Profit

$198M

Previous: $172M+15.0%
Cash & Equivalents

$320M

Previous: $187M+70.9%
Total Assets

$2.89B

Previous: $2.63B+9.9%
Stock-Based Comp

$3.11M

Previous: $3.91M-20.4%

Revenue & EPS history

TopBuild · Revenue · Quarterly

$743M

Q1 2021+13.7%vs Q1 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Forward guidance

TopBuild provided its 2021 outlook for sales and adjusted EBITDA, with sales expected to be in the range of $3.22 billion to $3.32 billion and adjusted EBITDA in the range of $532 million to $562 million.

Tailwinds

  • Sales are expected to be between $3,220 million and $3,320 million.
  • Adjusted EBITDA is projected to be between $532 million and $562 million.
  • Assumes housing starts between 1,450 and 1,500.
  • Estimated net income between $315.3 million and $344.6 million.
  • Share-based compensation between $11.2 million and $8.7 million.

Headwinds

  • Interest Expense and other, net between $23.8 million and $20.8 million
  • Income tax expense between $110.8 million and $121.0 million
  • Depreciation and Amortization between $70.9 million and $66.9 million
  • Guidance does not include potential acquisitions or divestitures.
  • Reconciliation of non-GAAP targets to corresponding GAAP measures is not available.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+1.4%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+2.2%

Avg return

30 days after

63%

31 / 49 earnings

Positive

+14.2%

Q3 2019

Best reaction

-14.1%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.6%-0.8%-5.8%
Q4 2025-3.7%-10.8%-28.2%
Q3 2025-1.1%+0.0%+4.8%
Q1 2025-3.1%+1.1%+3.1%
Q4 2024+2.7%+1.4%+3.0%
Q3 2024+2.5%+1.9%+3.3%
Q2 2024-14.1%-12.4%-14.4%
Q1 2024-5.0%-0.8%-1.8%
Q4 2023-2.6%-2.1%+6.7%
Q3 2023+11.1%+20.5%+34.8%
Q2 2023+7.5%+9.2%+8.3%
Q1 2023-3.1%-5.3%-1.8%
Q4 2022+4.1%+4.8%-2.5%
Q3 2022-13.1%-13.9%-7.1%
Q2 2022-6.0%-9.4%-16.5%
Q1 2022+1.0%-0.5%+4.2%
Q4 2021-12.7%-6.1%-12.4%
Q3 2021-1.4%+0.4%+5.0%
Q2 2021+6.0%+8.5%+9.1%
Q1 2021-2.7%-8.5%-15.0%
Q4 2020+1.2%-5.3%+0.9%
Q3 2020+6.9%+6.4%+7.4%
Q2 2020+3.6%+4.4%+12.6%
Q1 2020+8.6%+11.2%+36.6%
Q4 2019-10.0%-16.4%-31.1%
Q3 2019+14.2%+10.5%+14.3%
Q2 2019+10.3%+8.9%+14.2%
Q1 2019+7.8%+13.2%+8.5%
Q4 2018+1.7%+2.3%+11.0%
Q3 2018+7.8%+3.8%-2.6%
Q2 2018-0.4%+0.8%-18.1%
Q1 2018+4.2%+6.2%+8.5%
Q4 2017-5.0%-1.2%+4.3%
Q3 2017-2.2%-0.4%+1.0%
Q2 2017+4.6%+3.7%+5.5%
Q1 2017+2.2%+1.5%+3.5%
Q4 2016+8.2%+7.7%+14.6%
Q3 2016+9.9%+15.4%+25.5%
Q2 2016-7.8%-7.8%-8.5%
Q1 2016+2.6%
Q1 2015+2.6%
Q1 2014+0.7%
Q4 2013+0.7%
Q4 2015+0.7%
Q3 2015+11.5%
Q3 2014+11.5%
Q4 2014+2.2%
Q2 2014+2.2%
Q2 2015+2.2%

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