Builders FirstSource (NYSE:BLDR) Posts Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Key Points

• Builders FirstSource reported quarterly earnings of $2.38 EPS, surpassing estimates by $0.03, but its revenue declined 5.0% year-over-year to $4.23 billion.
• The company's stock is currently trading at $130.18, reflecting a 2.4% increase, with a market cap of $14.39 billion.
• Builders FirstSource has initiated a $500 million share buyback program, highlighting the company's belief that its shares are undervalued.

Builders FirstSource (NYSE:BLDR - Get Free Report) announced its quarterly earnings results on Thursday. The company reported $2.38 earnings per share for the quarter, beating the consensus estimate of $2.35 by $0.03, Zacks reports. Builders FirstSource had a return on equity of 24.61% and a net margin of 4.74%. The firm had revenue of $4.23 billion for the quarter, compared to analysts' expectations of $4.29 billion. During the same period in the prior year, the business posted $3.50 earnings per share. The company's revenue was down 5.0% on a year-over-year basis. Builders FirstSource updated its FY 2025 guidance to EPS.

Builders FirstSource Stock Down 1.0%

BLDR traded down $1.30 during trading on Monday, reaching $128.88. The stock had a trading volume of 607,503 shares, compared to its average volume of 1,945,992. Builders FirstSource has a one year low of $102.60 and a one year high of $203.14. The company has a current ratio of 1.79, a quick ratio of 1.08 and a debt-to-equity ratio of 1.12. The stock's 50 day moving average is $120.51 and its two-hundred day moving average is $128.65. The company has a market capitalization of $14.25 billion, a price-to-earnings ratio of 19.61, a P/E/G ratio of 11.90 and a beta of 1.68.

Insider Buying and Selling at Builders FirstSource

In other Builders FirstSource news, Director Paul S. Levy acquired 283,517 shares of the company's stock in a transaction that occurred on Thursday, May 8th. The shares were bought at an average cost of $111.21 per share, with a total value of $31,529,925.57. Following the completion of the transaction, the director directly owned 1,672,687 shares of the company's stock, valued at approximately $186,019,521.27. This represents a 20.41% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Dirkson R. Charles bought 5,000 shares of the company's stock in a transaction on Tuesday, May 27th. The stock was purchased at an average cost of $109.67 per share, for a total transaction of $548,350.00. Following the completion of the transaction, the director directly owned 5,000 shares of the company's stock, valued at approximately $548,350. The trade was a ∞ increase in their position. The disclosure for this purchase can be found here. Insiders have bought 505,000 shares of company stock valued at $56,032,120 over the last 90 days. Corporate insiders own 1.80% of the company's stock.

Institutional Inflows and Outflows

A hedge fund recently raised its stake in Builders FirstSource stock. Integrated Wealth Concepts LLC boosted its position in Builders FirstSource, Inc. (NYSE:BLDR - Free Report) by 9.3% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The fund owned 3,460 shares of the company's stock after purchasing an additional 295 shares during the period. Integrated Wealth Concepts LLC's holdings in Builders FirstSource were worth $432,000 as of its most recent SEC filing. Hedge funds and other institutional investors own 95.53% of the company's stock.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on BLDR. Baird R W cut Builders FirstSource from a "strong-buy" rating to a "hold" rating in a research report on Friday. BMO Capital Markets decreased their price target on Builders FirstSource from $146.00 to $135.00 and set a "market perform" rating on the stock in a research report on Monday, May 5th. Zelman & Associates reiterated an "underperform" rating on shares of Builders FirstSource in a research report on Friday, July 18th. Royal Bank Of Canada cut Builders FirstSource from an "outperform" rating to a "sector perform" rating and decreased their price target for the company from $132.00 to $129.00 in a research report on Friday. Finally, Raymond James Financial reissued an "outperform" rating and set a $140.00 price objective (down previously from $170.00) on shares of Builders FirstSource in a report on Friday, May 2nd. One equities research analyst has rated the stock with a sell rating, nine have assigned a hold rating and twelve have assigned a buy rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $158.79.

Builders FirstSource declared that its board has initiated a share repurchase program on Thursday, May 1st that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the company to reacquire up to 3.9% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's management believes its shares are undervalued.

About Builders FirstSource

Builders FirstSource, Inc, together with its subsidiaries, manufactures and supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers in the United States. It offers lumber and lumber sheet goods comprising dimensional lumber, plywood, and oriented strand board products that are used in on-site house framing; manufactured products, such as wood floor and roof trusses, floor trusses, wall panels, stairs, and engineered wood products; and windows, and interior and exterior door units, as well as interior trims and custom products comprising intricate mouldings, stair parts, and columns under the Synboard brand name.