NYSE$BLD

TopBuild Corp. · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

TopBuild's third quarter results in 2020 reflected an increase in net sales and margin expansion.

TopBuild reported a 2.2% increase in net sales to $697.2 million, driven by increased volume and sales from acquisitions. The company's gross margin increased by 210 basis points to 28.4%, and operating margin was 14.6%, up 280 basis points. Net income was $70.0 million, or $2.11 per diluted share, while adjusted EBITDA was $119.2 million, a 21.6% increase, with adjusted EBITDA margin improving 270 basis points to 17.1%.

  • Net sales increased 2.2% to $697.2 million, driven by increased volume and sales from acquisitions.
  • Gross margin increased 210 basis points to 28.4%.
  • Operating margin, both reported and adjusted, was 14.6%, up 280 basis points.
  • Adjusted EBITDA was $119.2 million, compared to $98.0 million, a 21.6% increase, and adjusted EBITDA margin improved 270 basis points to 17.1%.

Headline financials

Total Revenue

$697M

Previous: $682M+2.2%
EPS (adj)

$2.10

Previous: $1.53+37.3%
Operating margin

14.6%

Previous: 11.8%+23.7%
Adjusted EBITDA margin

17.1%

Previous: 14.4%+18.8%
Capital Expenditures

-$27.2M

Previous: -$34.1M+20.2%
Free Cash Flow

$42.8M

Previous: $20.9M+105.0%
Net Income

$70M

Previous: $55M+27.3%
Operating Income

$102M

Previous: $80.4M+26.2%
Gross Profit

$198M

Previous: $179M+10.6%
Cash & Equivalents

$315M

Previous: $172M+83.8%
Total Assets

$2.75B

Previous: $2.62B+4.7%
Stock-Based Comp

$3.12M

Previous: $3.93M-20.5%

Revenue & EPS history

TopBuild · Revenue · Quarterly

$697M

Q3 2020+2.2%vs Q3 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Forward guidance

Looking ahead, the company is bullish on the overall fundamentals of its end markets and its ability to leverage its size and scale to drive market share.

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 Q3 2020

Historical avgQ3 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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