NYSE$BLD

TopBuild Corp. · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported second quarter results with a decline in net sales but improved margins and profitability.

TopBuild reported a 2.1% decrease in net sales to $646.1 million due to COVID-19 impacts, but achieved a 110 bps gross margin expansion and a 12.5% operating margin. Adjusted EBITDA margin increased by 250 bps to 16.7%. Net income was $55.5 million, or $1.67 per diluted share, while adjusted income was $55.7 million, or $1.68 per diluted share.

  • Net sales declined 2.1% to $646.1 million, primarily driven by volume declines related to the impact of the COVID-19 pandemic.
  • Gross margin increased 110 basis points to 27.6%. On an adjusted basis, gross margin increased 130 basis points to 27.8%.
  • Operating margin was 12.5%, up 100 basis points. Adjusted operating margin improved 130 basis points to 12.9%.
  • Adjusted EBITDA margin improved 250 basis points to 16.7%.

Headline financials

Total Revenue

$646M

Previous: $660M-2.1%
EPS (adj)

$1.68

Previous: $1.43+17.5%
Operating margin

12.5%

Previous: 11.5%+8.7%
Adjusted EBITDA margin

16.7%

Previous: 14.2%+17.6%
Capital Expenditures

-$20.9M

Previous: -$22M+4.8%
Free Cash Flow

$34.6M

Previous: $30.1M+14.9%
Net Income

$55.5M

Previous: $52.1M+6.6%
Operating Income

$80.5M

Previous: $76M+5.8%
Gross Profit

$178M

Previous: $175M+1.8%
Cash & Equivalents

$259M

Previous: $142M+82.6%
Total Assets

$2.67B

Previous: $2.58B+3.5%
Stock-Based Comp

$5.13M

Previous: $4.51M+13.7%

Revenue & EPS history

TopBuild · Revenue · Quarterly

$646M

Q2 2020-2.1%vs Q2 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Forward guidance

Company is confident in ability to successfully meet the challenges and opportunities in the second half of the year.

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 Q2 2020

Historical avgQ2 2020

+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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