NYSE$BLDR

Builders FirstSource Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Builders FirstSource achieved record profitability driven by focused execution and strong housing fundamentals.

Builders FirstSource reported a 2.2% increase in net sales to $1.9 billion, with adjusted EBITDA rising by 11.2% to a record $162 million. Net income was $78.9 million, or $0.67 per diluted share, and the company reduced its net leverage ratio to 2.3x.

  • Net sales increased by 2.2% compared to the prior year period.
  • Adjusted EBITDA increased 11.2% to a record $162 million, or 8.3% of net sales.
  • Net income reached $78.9 million, or $0.67 per diluted share.
  • The company's net debt to Adjusted EBITDA ratio stood at 2.3x with liquidity of $1.2 billion.

Headline financials

Total Revenue

$1.95B

Previous: $1.9B+2.2%
EPS (adj)

$0.67

Previous: $0.63+6.3%
Gross Margin

26.6%

Previous: 27.2%-2.2%
Adjusted EBITDA

$162M

Previous: $146M+11.2%
Adjusted EBITDA Margin

8.3%

Previous: 7.6%+9.2%
SG&A Expenses

$19.90

Previous: $21.00-5.2%
Net Interest Expense

$26.8M

Previous: $29.4M-8.8%
Income Tax Benefit

$23.5M

Previous: $19.7M+19.3%
Capital Expenditures

-$54.8M

Previous: -$45.4M-20.7%
Free Cash Flow

$24.1M

Previous: $21.2M+13.7%
Net Income

$78.9M

Previous: $66.6M+18.5%
Operating Income

$129M

Previous: $116M+11.8%
Gross Profit

$517M

Previous: $517M+0.0%
Cash & Equivalents

$385M

Previous: $10.6M+3553.0%
Total Assets

$3.76B

Previous: $3.25B+15.8%
Stock-Based Comp

$3.47M

Previous: $3.38M+2.6%

Revenue & EPS history

Builders FirstSource · Revenue · Quarterly

$1.95B

Q2 2020+2.2%vs Q2 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Forward guidance

Builders FirstSource is focusing on disciplined cost management and efficiently meeting customer demand, while managing commodity inflation and generating additional cash flow in the third quarter.

Tailwinds

  • Positive overall homebuilding environment.
  • Supported by tailwinds and rising demand.
  • Focusing efforts on disciplined cost management.
  • Working to efficiently meet customer demand.
  • Well-positioned to execute on value-enhancing growth opportunities.

Headwinds

  • Manage the impact of accelerating commodity inflation.
  • Business disruptions outside of our control related to the COVID-19 pandemic.
  • Revenues and operating results being highly dependent on, among other things, the homebuilding industry.
  • Lumber prices and the economy.
  • The Company’s growth strategies, including gaining 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 Q2 2020

Historical avgQ2 2020

+1.2%

Avg return

Earnings day

+2.6%

Avg return

5 days after

+2.6%

Avg return

30 days after

47%

30 / 64 earnings

Positive

+23.3%

Q3 2015

Best reaction

-18.6%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.5%-10.6%-8.6%
Q4 2025+0.8%-3.6%-26.4%
Q3 2025-3.1%-4.8%-2.7%
Q1 2025-6.4%-10.4%-10.0%
Q4 2024-0.3%-2.8%-12.7%
Q3 2024+2.5%+3.4%+2.0%
Q2 2024+2.1%+3.9%+12.0%
Q1 2024-18.6%-16.9%-27.5%
Q4 2023+2.7%+5.2%+14.6%
Q3 2023+11.7%+15.7%+28.3%
Q2 2023-1.4%+3.7%+1.3%
Q1 2023+12.2%+19.4%+25.0%
Q4 2022+5.2%+9.4%+5.8%
Q3 2022-1.5%+13.8%+14.7%
Q2 2022+3.3%+0.5%-13.8%
Q1 2022-2.7%+3.3%+0.6%
Q4 2021+3.8%-0.4%-13.3%
Q3 2021+11.6%+12.3%+18.0%
Q2 2021+2.9%+6.2%+18.6%
Q1 2021+6.7%+2.7%-13.0%
Q4 2020+10.4%+6.5%+14.8%
Q3 2020-0.7%+7.1%+24.3%
Q2 2020-0.0%+10.6%+33.6%
Q1 2020-11.8%-13.5%+6.5%
Q4 2019-4.5%-11.6%-59.2%
Q3 2019+8.7%+6.4%+13.6%
Q2 2019+9.8%+10.5%+13.2%
Q1 2019+17.0%+16.4%-1.9%
Q4 2018+2.2%+0.6%-2.8%
Q3 2018+17.8%+12.0%+9.3%
Q2 2018-1.4%-4.7%-9.4%
Q1 2018-3.1%-5.8%+2.8%
Q4 2017+7.8%+7.2%+1.0%
Q3 2017+5.3%+3.0%+17.5%
Q2 2017+7.0%+6.4%+6.1%
Q1 2017-4.2%-11.1%-11.1%
Q4 2016+13.4%+18.2%+15.8%
Q3 2016-3.1%+0.3%+12.1%
Q2 2016-4.2%-5.4%+2.4%
Q1 2016+2.8%
Q4 2015+13.4%
Q3 2015+23.3%
Q2 2015-3.3%
Q1 2015-1.6%
Q4 2014-4.0%
Q3 2014+4.6%
Q2 2014-10.8%
Q1 2014-4.4%
Q4 2013+7.2%
Q3 2013-0.5%
Q2 2013-2.2%
Q1 2013+3.9%
Q4 2012-1.2%
Q3 2012-1.8%
Q2 2012-15.4%
Q1 2012-6.9%
Q4 2011+4.6%
Q3 2011-10.4%
Q2 2011-11.0%
Q1 2011-0.7%
Q4 2010+0.8%
Q3 2010-1.9%
Q2 2010-7.1%
Q1 2010-0.5%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro