For the quarter ended September 2024, Beacon Roofing Supply (BECN) reported revenue of $2.77 billion, up 7.3% over the same period last year. EPS came in at $2.80, compared to $2.85 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $2.78 billion, representing a surprise of -0.24%. The company delivered an EPS surprise of -2.78%, with the consensus EPS estimate being $2.88. While investors scrutinize revenue and earnings changes year-over-year and how they compare with ...

Beacon Roofing Supply (BECN) came out with quarterly earnings of $2.80 per share, missing the Zacks Consensus Estimate of $2.88 per share. This compares to earnings of $2.85 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -2.78%. A quarter ago, it was expected that this roofing materials distributor would post earnings of $2.82 per share when it actually produced earnings of $2.32, delivering a surprise of -17.73%. Over the l ...

Financial Performance - Record net sales of $2.77 billion for Q3 2024, a 7.3% increase compared to Q3 2023[4] - Adjusted EBITDA reached $325.2 million, up from $309.6 million in the prior year[5] - Net income for Q3 2024 was $145.3 million, compared to $161.3 million in Q3 2023[5] - Gross margin improved to 26.3%, up from 26.0% in the prior year[4] - Year-to-date net sales reached $7.36 billion, a 7.9% increase compared to the prior year[6] - Net sales for Q3 2024 reached $2,772.6 million, a 7.3% increase from $2,584.3 million in Q3 2023[16] - Gross profit margin improved to 26.3% in Q3 2024, compared to 26.0% in Q3 2023[16] - Net income for Q3 2024 was $145.3 million, a decrease from $161.3 million in Q3 2023, resulting in a net income margin of 5.2%[16] - Adjusted Net Income for the three months ended September 30, 2024, was $176.9 million, compared to $180.0 million in the same period of 2023, indicating a slight decrease of 0.6%[35] Operating Expenses - Operating expenses increased to $483.7 million, representing 17.4% of net sales, compared to 16.2% in the prior year[4] - Operating expenses increased to $483.7 million, representing 17.4% of net sales, up from 16.2% in Q3 2023[16] - Adjusted Operating Expense for the three months ended September 30, 2024, was $442.9 million, representing 16.0% of net sales, compared to $395.2 million or 15.3% of net sales in the same period of 2023[34] - Operating expense as a percentage of net sales for the three months ended September 30, 2024, was 17.4%, compared to 16.2% in the same period of 2023[34] Assets and Liabilities - Total assets as of September 30, 2024, were $7,419.5 million, an increase from $6,553.0 million as of September 30, 2023[18] - Current liabilities increased to $1,935.5 million from $1,912.3 million in the previous year[18] - Long-term debt rose to $2,483.3 million, compared to $2,193.9 million in September 2023[18] - Cash and cash equivalents decreased to $68.0 million from $69.7 million in the previous year[18] - Borrowings under revolving lines of credit increased to $2,330.8 million, up from $1,720.0 million in the previous year[20] Sales Performance - Residential roofing product sales increased by 2.3%, while non-residential roofing product sales rose by 9.4%[5] - Residential roofing products sales increased to $3,661.2 million, up 4.0% from $3,521.5 million in the previous year[23] - Non-residential roofing products sales rose to $2,012.7 million, reflecting a year-over-year increase of 12.1%[23] - Acquired branches contributed approximately $247 million in annual sales, with a 5.6% increase in Q3 net sales attributed to acquisitions[1][5] Cash Flow - Net cash provided by operating activities significantly dropped to $59.6 million compared to $525.7 million in the same period last year, a decrease of 88.7%[20] - The company experienced a net cash used in investing activities of $482.2 million, compared to $144.9 million in the same period last year[20] Capital Expenditures - The company reported capital expenditures of $87.6 million for the nine months ended September 30, 2024, compared to $85.5 million in the prior year[20] Adjustments and Costs - For the three months ended September 30, 2024, total adjusting items amounted to $42.3 million, compared to $25.1 million for the same period in 2023, reflecting an increase of 68.5%[32] - Acquisition costs for the three months ended September 30, 2024, totaled $29.7 million, up from $24.6 million in the same period of 2023, reflecting a 20.7% increase[35] - Restructuring costs for the three months ended September 30, 2024, were $12.6 million, compared to $0.5 million in the same period of 2023, indicating a significant increase due to restructuring activities[35] Shareholder Equity - Beacon's total stockholders' equity increased to $1,897.6 million from $1,749.7 million in the previous year[18] Miscellaneous - The company expects annual savings of approximately $45 million from recent staffing adjustments[2] - The company received $5.9 million from a shareholder related to short-swing trading profits disgorged, recorded to additional paid-in capital[20] - Interest expense for the three months ended September 30, 2024, was $50.0 million, compared to $36.4 million in the same period of 2023, reflecting an increase of 37.1%[36] - The tax impact of adjusting items for the three months ended September 30, 2024, was $10.7 million, compared to $6.4 million in the same period of 2023, showing an increase of 67.7%[35]

Wall Street expects a year-over-year increase in earnings on higher revenues when Beacon Roofing Supply (BECN) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on ...

Beacon Roofing Supply, Inc (NASDAQ: BECN ) is a relatively unknown company that has had a fantastic run over the past few years when they started their new buyback program. This, along with outstanding My primary area of concentration will be on identifying companies of exceptional caliber, with a proven ability to reinvest capital for impressive returns. Targeting those with a market capitalization of less than $10 billion, affords ample opportunities for growth. The ideal scenario is for these companies t ...

Beacon Roofing Supply, Inc. (BECN) expanded its geographic footprint across the United States by opening branches at four locations. The branches were opened in Pelham, AL; Queen Creek, AZ; Port St. Lucie, FL, and Bellingham, WA. Expanding branch locations in new and existing markets, while simultaneously catering to customers' needs, is one of the goals under BECN's Ambition 2025 plan. BECN's Focus on Ambition 2025 Plan Beacon has been intently focusing on several strategic initiatives to drive its long-te ...

Beacon Roofing Supply, Inc.'s (BECN) shares have dropped 12.5% in the past six months against the Zacks Building Products - Retail industry's 6.3% growth, the broader Retail-Wholesale sector's 9.1% increase and the S&P 500's 9.6% rise. The company faces challenges from higher operating and acquisition-related expenses. Also, softer demand in certain markets due to weather disruptions contributed to the overall performance decline. Image Source: Zacks Investment Research The roofing materials industry, close ...

Core Insights - Beacon Roofing Supply, Inc. (BECN) has launched its no-cost digital tool, Beacon PRO+, in Canada to enhance market reach and improve business management for roofing contractors [1][2] - The Ambition 2025 plan focuses on strategic initiatives aimed at enhancing customer experience, expanding revenue, and increasing value for stakeholders [3][5] - Digital sales have significantly increased, with a nearly 22% year-over-year growth in Q2 2024, representing approximately 26% of residential sales [4] Group 1: Product Launch and Market Expansion - The Beacon PRO+ tool is available in both English and French, allowing Canadian contractors to improve responsiveness and planning [2] - The digital platform operates 24/7, facilitating faster business transactions for contractors in Canada [2] Group 2: Strategic Initiatives and Financial Performance - The Ambition 2025 plan includes expanding digital platforms and market penetration as key growth drivers [4] - Digital sales have enhanced customer loyalty and increased average transaction sizes, improving margins by approximately 150 basis points compared to offline channels [4] Group 3: Stock Performance and Market Context - BECN's stock gained 1.3% during trading hours and 0.5% in after-hours following the announcement of the Beacon PRO+ launch [2] - Over the past year, BECN shares increased by 10.1%, while the Zacks Building Products - Retail industry saw a growth of 21.1% [5]

Core Insights - Beacon Roofing Supply, Inc. has acquired Chicago Metal Supply & Fabrication, Inc., enhancing its position in the architectural metal fabrication market and expanding its presence in the North Central region [1][2]. Group 1: Acquisition Details - Chicago Metal Supply, founded in 2011, specializes in custom architectural sheet metal fabrication for commercial, residential, and historical restoration projects [2]. - The acquisition allows Chicago Metal Supply to leverage Beacon's digital platform, expanding its catalog and improving service offerings [2][3]. - This strategic addition is expected to strengthen Beacon's metal solutions offerings, integrating Chicago Metal Supply's expertise and advanced equipment [3]. Group 2: Growth Strategy - The acquisition aligns with Beacon's Ambition 2025 goals, which focus on growth through acquisitions and market share expansion in the metal fabrication sector [4][5]. - Since the beginning of 2022, Beacon has opened 58 greenfield locations and completed 18 acquisitions, generating $556 million in net sales in the first half of 2024 [6]. - In the first six months of 2024, Beacon acquired 23 branches and opened 13 new locations, with a 23.9% increase in digital sales compared to the previous year [7]. Group 3: Market Performance - Despite a 21.6% decline in shares over the past three months, the Building Products - Retail industry has seen a 6.6% rise, indicating external challenges affecting performance [8]. - The Architectural Billing Index (ABI) has been below 50, indicating a contraction in architectural activity, although strong demand for repair and reroofing has mitigated the impact of slowing new commercial construction [9]. - The company remains optimistic about improvements in the third quarter of 2024 and anticipates strong cash flow in the latter half of the year [10]. Group 4: Investment Outlook - The acquisition of Chicago Metal Supply is viewed as a strong indicator of Beacon's potential for long-term growth, enhancing its capabilities in metal solutions [11][12].

Participants in the Zacks Building Products – Retail industry are poised to benefit from technological initiatives to enhance the e-commerce experience. Companies are bolstering their digital ecosystems, offering superior online assortments and enhancing omni-channel capabilities. Industry players are also gaining from strategic acquisitions, supply-chain expansion and digital advancements. Ongoing innovation and growth in e-commerce are expected to support companies like The Home Depot Inc. (HD) , Lowe's C ...