Earnings Preview: Beacon Roofing - Analyst Blog

By Zacks Equity Research,

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Beacon Roofing Supply, Inc.  ( BECN ) is slated to report its second-quarter 2012 earnings results before the market opens on May 10. The Zacks Consensus Estimate for the quarter is a loss of 8 cents per share, representing an estimated year-over-year increase of 41.26%.

First Quarter Synopsis

The company, in the first quarter, reported adjusted earnings of 39 cents a share, beating the Zacks Consensus Estimate of 29 cents and exceeding the year-ago quarter earnings of 22 cents. On a reported basis, earnings were 41 cents a share compared with 22 cents in the year-ago quarter. 

Revenues in the first quarter were $489.39 million, outperforming the Zacks Consensus Estimate of $475 million.

Beacon's top line improvement largely stemmed fro the double-digit sales in most geographic regions.

Estimate Revision Trend


Out of the 11 analysts covering the stock, none have revised their estimates for the second quarter in either direction over the last 7 and 30 days. A similar trend applies for fiscal 2012. 


The Zacks Consensus Estimate remained the same for both the second quarter and fiscal 2012 over the last 7 and 30 days.

Earnings Surprise History

With respect to earnings surprise, Beacon has topped the Zacks Consensus Estimate in three of the last four quarters, though it missed the estimate on one occasion. The company has delivered an average negative earnings surprise of 3.36%, over the preceding four quarters, implying that it has missed the Zacks Consensus Estimate by that measure.

Our Take 

The significant decline in housing starts and weak commercial construction activity in these markets reduced the demand for Beacon's products, affecting its business negatively. Moreover, tight credit obligations and lower complementary product sales may pressure the company's second-quarter 2012 results.    

Currently, we have a long-term Neutral recommendation on Beacon. The stock retains a short-term Zacks #4 Rank (Sell).

BEACON ROOFING (BECN): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: BECN

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