BlueLinx (NYSE:BXC) Announces Quarterly Earnings Results, Misses Estimates By $0.52 EPS

Key Points

• BlueLinx reported earnings of $0.48 per share, missing expectations by $0.52, which has raised concerns among investors.
• Following the earnings report, BlueLinx shares fell by 3.5%, trading at $75.49 with significant trading volume.
• Analyst ratings have shifted, with some firms downgrading BlueLinx from a "buy" to "neutral" or "sell," reflecting cautious sentiment on the stock's performance.

BlueLinx (NYSE:BXC - Get Free Report) announced its earnings results on Tuesday. The construction company reported $0.48 EPS for the quarter, missing the consensus estimate of $1.00 by ($0.52), Zacks reports. BlueLinx had a net margin of 0.96% and a return on equity of 3.48%. The company had revenue of $780.11 million for the quarter, compared to analysts' expectations of $784.13 million.

BlueLinx Stock Down 1.8%

BXC traded down $1.31 on Friday, reaching $71.97. 155,832 shares of the company traded hands, compared to its average volume of 131,450. The company has a market cap of $567.80 million, a price-to-earnings ratio of 21.35 and a beta of 1.74. The company has a debt-to-equity ratio of 0.96, a current ratio of 4.55 and a quick ratio of 2.73. The stock's 50 day moving average price is $74.49 and its 200-day moving average price is $79.95. BlueLinx has a 52-week low of $63.13 and a 52-week high of $134.79.

BlueLinx declared that its Board of Directors has approved a share buyback plan on Tuesday, July 29th that authorizes the company to buyback $50.00 million in outstanding shares. This buyback authorization authorizes the construction company to repurchase up to 8% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's board believes its stock is undervalued.

Institutional Investors Weigh In On BlueLinx

A number of institutional investors have recently modified their holdings of BXC. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in BlueLinx by 4.7% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 4,863 shares of the construction company's stock worth $365,000 after purchasing an additional 220 shares in the last quarter. Royal Bank of Canada lifted its position in shares of BlueLinx by 4.3% in the first quarter. Royal Bank of Canada now owns 7,870 shares of the construction company's stock worth $590,000 after buying an additional 321 shares during the last quarter. Finally, AQR Capital Management LLC increased its holdings in shares of BlueLinx by 24.6% during the 1st quarter. AQR Capital Management LLC now owns 48,257 shares of the construction company's stock valued at $3,618,000 after acquiring an additional 9,538 shares during the last quarter. Institutional investors and hedge funds own 90.83% of the company's stock.

Wall Street Analyst Weigh In

Several research firms have issued reports on BXC. Loop Capital cut their price objective on BlueLinx from $120.00 to $115.00 and set a "buy" rating on the stock in a report on Monday, April 14th. DA Davidson lowered shares of BlueLinx from a "buy" rating to a "neutral" rating and set a $80.00 price objective for the company. in a research note on Friday, July 18th. Wall Street Zen downgraded shares of BlueLinx from a "hold" rating to a "sell" rating in a research note on Friday, July 18th. Finally, Benchmark reduced their target price on BlueLinx from $110.00 to $83.00 and set a "buy" rating for the company in a report on Friday.

BlueLinx Company Profile

BlueLinx Holdings Inc, together with its subsidiaries, engages in the distribution of residential and commercial building products in the United States. It distributes specialty products, including engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products; and structural products, such as lumber, plywood, oriented strand boards, rebars and remesh, as well as other wood products that are used for structural support in construction projects.