Core Insights - Beacon Roofing Supply reported $2.67 billion in revenue for the quarter ended June 2024, a year-over-year increase of 6.8% [1] - The EPS for the same period was $2.32, down from $2.66 a year ago, with an EPS surprise of -17.73% compared to the consensus estimate of $2.82 [1] Revenue Performance - Revenue growth rate for residential roofing products was 2.4%, significantly below the three-analyst average estimate of 8.9% [3] - Revenue growth rate for complementary building products was 12.3%, exceeding the three-analyst average estimate of 7.5% [3][6] - Revenue growth rate for non-residential roofing products was 11.1%, outperforming the average estimate of 1.7% [4] Net Sales Analysis - Net sales for residential roofing products were $1.33 billion, below the average estimate of $1.40 billion, reflecting a 2.4% year-over-year change [5] - Net sales for complementary building products reached $600.60 million, surpassing the average estimate of $591.90 million, with a year-over-year increase of 12.3% [6] - Net sales for non-residential roofing products were $745.10 million, exceeding the average estimate of $704.26 million, representing an 11.1% year-over-year change [7] Stock Performance - Shares of Beacon Roofing have returned +16.6% over the past month, compared to the Zacks S&P 500 composite's +1.1% change [7]

Core Viewpoint - Beacon Roofing Supply reported quarterly earnings of $2.32 per share, missing the Zacks Consensus Estimate of $2.82 per share, representing an earnings surprise of -17.73% [1] - The company posted revenues of $2.67 billion for the quarter, which also fell short of the Zacks Consensus Estimate by 0.62% [2] Financial Performance - Year-over-year earnings decreased from $2.66 per share to $2.32 per share [1] - Revenues increased from $2.5 billion a year ago to $2.67 billion [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times and topped revenue estimates two times [2] Stock Performance - Beacon Roofing shares have gained approximately 18.1% since the beginning of the year, outperforming the S&P 500's gain of 15.8% [3] - The current Zacks Rank for the stock is 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.87 on revenues of $2.7 billion, and for the current fiscal year, it is $7.79 on revenues of $9.64 billion [7] - The estimate revisions trend for Beacon Roofing is mixed, which may change following the recent earnings report [6] Industry Context - The Building Products - Retail industry is currently in the top 40% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - GMS, another company in the same industry, is expected to report quarterly earnings of $2.07 per share, reflecting a year-over-year change of -13.8% [9]

Financial Performance - Record quarterly net sales reached $2.67 billion, a 6.8% increase compared to the prior year, driven by price execution and contributions from acquired and newly opened branches[5] - Net income for the second quarter was $127.2 million, down from $153.8 million in the prior year, with diluted EPS at $1.99 compared to $1.97[5] - Adjusted EBITDA for the second quarter was $279.4 million, compared to $290.3 million in the prior year, reflecting a decrease in margin[5] - Year-to-date net sales increased to $4.59 billion, an 8.3% growth compared to the prior year, marking a record for the first half of the year[6] - Net income for the six months ended June 30, 2024, was $132.8 million, a decrease of 25.7% from $178.6 million in the same period of 2023[19] - Total net sales for the six months ended June 30, 2024, reached $4,587.0 million, reflecting an increase of 8.3% compared to $4,236.0 million in the prior year[23] Gross Margin and Operating Expenses - Gross margin improved to 25.6%, up from 25.4% in the prior year, as higher average selling prices offset increased product costs[5] - Operating expenses increased to $467.9 million, representing 17.5% of net sales, up from 16.1% in the prior year[5] - Operating expenses increased to $467.9 million, representing 17.5% of net sales, up from 16.1% in Q2 2023[15] - Adjusted Operating Expense for the three months ended June 30, 2024, was $440.9 million, up from $377.6 million in the same period of 2023, representing a 16.7% increase[33] - Adjusted Operating Expense as a percentage of net sales for the six months ended June 30, 2024, was 18.4%, compared to 17.3% in the same period of 2023[33] Sales Performance - Residential roofing product sales increased by 5.0%, while non-residential roofing product sales rose by 13.6% compared to the prior year[6] - Net sales for Q2 2024 reached $2,674.6 million, a 10.4% increase from $2,426.0 million in Q2 2023[15] - Gross profit margin improved to 25.6% in Q2 2024 compared to 25.4% in Q2 2023, with gross profit of $683.7 million[15] - Residential roofing products accounted for 49.2% of total net sales in the six months ended June 30, 2024, generating $2,256.3 million, up 5.0% from $2,148.1 million in 2023[23] - Non-residential roofing products saw a significant increase of 13.6%, with sales of $1,273.7 million compared to $1,120.8 million in the previous year[23] Assets and Liabilities - Total assets as of June 30, 2024, were $7,336.9 million, an increase from $6,500.3 million as of June 30, 2023[17] - Accounts receivable increased to $1,570.8 million from $1,361.7 million year-over-year[17] - Long-term debt rose to $2,485.4 million, up from $1,603.2 million in the previous year[17] - Total liabilities increased to $5,583.3 million compared to $4,078.4 million a year ago[17] Cash Flow and Capital Expenditures - Cash provided by operating activities was negative at $(189.2) million for the six months ended June 30, 2024, compared to $358.7 million in the same period of 2023[19] - The company reported capital expenditures of $(61.5) million for the six months ended June 30, 2024, slightly higher than $(60.3) million in the prior year[19] - Borrowings under revolving lines of credit increased significantly to $1,715.2 million in the six months ended June 30, 2024, compared to $840.7 million in the same period of 2023[19] - The company’s cash and cash equivalents at the end of the period were $76.6 million, up from $65.8 million at the end of June 30, 2023[19] Acquisitions and Strategic Plans - The company acquired Smalley & Co., a leading waterproofing distributor, expanding its footprint in key markets[1] - The company plans to adjust inventory and resources proactively in response to local market conditions while maintaining high customer service standards[3] - The company plans to continue using non-GAAP measures to provide investors with a clearer view of its financial performance and operational goals[27] Adjusted Financial Metrics - Adjusted Net Income for the three months ended June 30, 2024, was $148.4 million, compared to $172.9 million in the same period of 2023, indicating a decrease of 14.2%[34] - Adjusted EBITDA is defined as net income (loss) excluding interest expense, income taxes, depreciation and amortization, stock-based compensation, and other adjusting items[26] - For the three months ended June 30, 2024, total adjusting items amounted to $28.5 million, compared to $25.6 million for the same period in 2023, reflecting an increase of 11.3%[31] - Adjusted EBITDA for the three months ended June 30, 2024, was $279.4 million, down from $290.3 million in the same period of 2023, a decline of 3.1%[36]

Core Viewpoint - The market anticipates Beacon Roofing Supply (BECN) to report a year-over-year increase in earnings driven by higher revenues when it releases its quarterly results for the period ending June 2024 [1] Earnings Expectations - The earnings report is expected on August 1, 2024, with a consensus EPS estimate of $2.82, reflecting a 6% increase year-over-year [3][4] - Revenues are projected to reach $2.69 billion, representing a 7.5% increase from the same quarter last year [4] Estimate Revisions - The consensus EPS estimate has been revised 0.1% higher in the last 30 days, indicating a slight bullish sentiment among analysts [5] - The Most Accurate Estimate for Beacon Roofing is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.97%, suggesting analysts are optimistic about the company's earnings prospects [11] Historical Performance - In the last reported quarter, Beacon Roofing exceeded the expected earnings of $0.35 per share by delivering $0.41, achieving a surprise of +17.14% [14] - The company has beaten consensus EPS estimates in all of the last four quarters [15] Predictive Indicators - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [9] - Currently, Beacon Roofing holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [12][13]

Core Insights - Beacon Roofing Supply, Inc. has acquired Roofers Mart, enhancing its commercial roofing product offerings and expanding its market reach in the Los Angeles area [1][9][10] - The acquisition aligns with Beacon's Ambition 2025 plan, which focuses on growth through bolt-on acquisitions and new branch locations [2][10][11] - Year-to-date, Beacon has made seven acquisitions, contributing to its geographic footprint expansion and progress towards its Ambition 2025 targets [2] Financial Performance - Beacon's shares have increased by 8.7% year-to-date, outperforming the Zacks Building Products - Retail industry's decline of 1.5% [3] - The company's focus on both organic and inorganic growth initiatives is driving its positive stock performance [3] Strategic Initiatives - Beacon is committed to enhancing customer experience, expanding revenue and margins, and increasing value for stakeholders through its strategic initiatives [11] - The acquisition of Roofers Mart is expected to create synergies that will support Beacon's business expansion efforts [10]

Company Overview - Beacon Roofing Supply, Inc. (BECN) has acquired Extreme Metal Fabricators, LLC and Integrity Metals, LLC to enhance its service offerings for metal roofing contractors in Florida [10][11] - The acquisition will expand BECN's product offerings, including metal roofing solutions, waterproofing, and restoration products, catering to the needs of Florida's contractors [1][2] Strategic Initiatives - BECN is focused on expanding its residential and commercial roofing product catalog through strategic acquisitions and new branch openings [3][12] - Since the launch of the Ambition 2025 strategic plan in February 2022, BECN has acquired 18 companies, adding 66 branches to its portfolio [4] Market Performance - BECN's shares have increased by 4.2% over the past year, compared to a 6.8% rise in the Building Products - Retail industry [5] - The company is expected to benefit from effective pricing strategies, productivity improvements, and cost-saving initiatives [5] Future Growth Plans - BECN plans to open 25 new branches in 2024, further expanding its service footprint to support residential and commercial roofers [12]

In a bid to continue providing services to residential and commercial roofers, Beacon Roofing Supply, Inc. (BECN) opened a new location in Terrell, TX. Also, it has opened new locations in Everett and Spokane, WA, to support specialty waterproofing contractors. Shares of Beacon — the largest distributor of residential and non-residential roofing materials in the United States and Canada — rallied 17.5% against the Building Products - Retail industry's 3.1% decline so far this year. Beacon has undertaken sev ...

This roofing materials distributor is expected to post quarterly earnings of $2.83 per share in its upcoming report, which represents a year-over-year change of +6.4%. Revenues are expected to be $2.69 billion, up 7.5% from the year-ago quarter. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research ...

The Zacks Building Products – Retail industry participants are likely to benefit from technology initiatives to bolster the e-commerce experience. Companies have been strengthening digital ecosystems, providing the best online assortments and bolstering omni-channel capabilities. Industry participants are also benefiting from accretive acquisitions, the focus on expanding supply-chain facilities and digital initiatives. Continued innovation, e-commerce expansion and strong demand are likely to benefit playe ...

Core Viewpoint - Beacon Roofing Supply, Inc. is actively pursuing its Ambition 2025 plan, focusing on geographic expansion and strategic acquisitions to enhance growth and shareholder value [1][3]. Group 1: Expansion Strategy - The company has recently expanded into two new locations: Attleboro, MA, and Mississauga, Ontario, Canada, to enhance its residential and commercial roofing services [2]. - The Attleboro branch will serve the Providence, Rhode Island metro and southeastern Massachusetts markets, while the Mississauga branch will cater to the Greater Toronto Area [2]. Group 2: Growth Initiatives - Beacon is concentrating on several strategic initiatives to drive long-term growth, improve customer experience, and increase top-line revenue and margins [3]. - The company is focusing on both organic and inorganic growth through bolt-on acquisitions and new branch openings [4]. Group 3: Recent Acquisitions - On May 1, 2024, Beacon announced the acquisition of Smalley & Company, adding 11 new locations across several states, which will enhance its waterproofing platform [4]. - In the trailing 12 months ending March 31, 2024, the company acquired 21 branches and opened 28 new locations [4]. Group 4: Market Performance - Shares of Beacon Roofing Supply have increased by 11.7% year-to-date, contrasting with a 4.3% decline in the Zacks Building Products - Retail industry, indicating strong performance driven by growth initiatives [5].