Builders FirstSource Set to Report Q4 Earnings: What's in Store?

Builders FirstSource, Inc. BLDR is slated to report fourth-quarter 2024 results on Feb. 20, before market open.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.In the last reported quarter, the company’s adjusted earnings per share (EPS) and net sales missed the Zacks Consensus Estimate by 0.7% and 5.2%, respectively. On a year-over-year basis, the top and the bottom lines tumbled 6.7% and 27.6%, respectively.BLDR’s earnings topped the consensus mark in three of the trailing four quarters and missed on the remaining occasion, with the average surprise being 13%.Trend in BLDR’s EstimatesThe Zacks Consensus Estimate for the company’s fourth-quarter EPS has moved south to $2.13 from $2.19 in the past 30 days. The estimated figure indicates a 40% year-over-year decline from $3.55.Builders FirstSource, Inc. Price and EPS Surprise Builders FirstSource, Inc. price-eps-surprise | Builders FirstSource, Inc. QuoteThe consensus estimate for net sales is pegged at $3.91 billion, indicating a decline of 5.7% from $4.15 billion reported in the year-ago quarter.Factors Likely to Influence Builders FirstSource’s ResultsRevenuesThe top-line performance of Builders FirstSource is expected to have declined year over year due to softness and uncertainty surrounding the housing market. The affordability concerns due to a still high mortgage rate and persistent sticky inflation are marring the housing start trends, which is directly affecting the company’s sales volume. The Value-added product category (represented 49.2% of third quarter 2024 net sales) of BLDR, which includes manufactured products and windows, doors & millwork, is likely to have been adversely impacted by the ongoing market headwinds.On the other hand, improved contributions from the other two reportable product categories of the company, Specialty building products & services (represented 25.5% of third-quarter net sales) and Lumber & lumber sheet goods (represented 25.3% of third-quarter net sales), are likely to have slightly offset the above headwinds during the quarter.The Zacks Consensus Estimate for the net sales of the Value-added product category is pegged at $1.73 billion, indicating a decline from $2.16 billion reported in the year-ago quarter.The consensus mark for the net sales of the Specialty building products & services and Lumber & lumber sheet goods are pegged at $996 million and $1.09 billion, implying year-over-year growth of 5%, respectively.EarningsThe bottom line of BLDR is expected to have declined year over year due to increased expenses from higher inorganic activities, reduced operating leverage and a fall in the top line. The uncertainties revolving around the housing market and the inflationary pressures are not only hurting the sales growth trend but also hurting the margins.Although the company is focusing on fostering its growth through a transformed business model and differentiated product portfolio, the lingering macro risks and a gloomy housing demand environment are suppressing the prospects to a great extent.What the Zacks Model Predicts for BLDROur proven model does not conclusively predict an earnings beat for Builders FirstSource this time around. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, this is not the case here, as you will see below.Earnings ESP: BLDR has an Earnings ESP of +12.50%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.Zacks Rank: The company currently carries a Zacks Rank #5 (Strong Sell).You can see the complete list of today’s Zacks #1 Rank stocks here.Stocks With the Favorable CombinationHere are some companies in the Zacks Retail-Wholesale sector which, per our model, have the right combination of elements to post an earnings beat in the respective quarters to be reported.Urban Outfitters, Inc. URBN currently has an Earnings ESP of +11.94% and a Zacks Rank of 2.URBN’s earnings for the fourth quarter of fiscal 2024 are expected to grow 29%. The company reported better-than-expected earnings in three of the last four quarters and missed on the remaining occasion, the average surprise being 22.8%.Sprouts Farmers Market, Inc. SFM currently has an Earnings ESP of +5.63% and a Zacks Rank of 2.SFM’s earnings for the fourth quarter of 2024 are expected to increase 49%. The company reported better-than-expected earnings in each of the last four quarters, the average surprise being 15.3%.Costco Wholesale Corporation COST has an Earnings ESP of +0.14% and a Zacks Rank of 2.COST reported better-than-expected earnings in each of the last four quarters, the average surprise being 2%. The company’s earnings for the second quarter of fiscal 2025 are expected to increase 10.2%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Costco Wholesale Corporation (COST): Free Stock Analysis Report Urban Outfitters, Inc. (URBN): Free Stock Analysis Report Builders FirstSource, Inc. (BLDR): Free Stock Analysis Report Sprouts Farmers Market, Inc. (SFM): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks