Beacon Roofing Supply, Inc.
) 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
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.
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
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