Storm Activity Boosts Beacon Roofing Supply's Preliminary Results: Analyst
Portfolio Pulse from Nabaparna Bhattacharya
Beacon Roofing Supply, Inc. (NASDAQ:BECN) has released its Q2 preliminary results, expecting net sales of around $2.5 billion and gross margins of about 25.4%. The company plans to buy back 400,000 outstanding shares of Series A Preferred stock from CD&R for $804.5 million, which is expected to raise leverage to 2.9x. The repurchase will reduce the diluted share count by 9.69 million shares and discontinue preferred dividends of $24 million per year. BECN shares are trading higher by 1.66% to $83.95.
July 10, 2023 | 7:02 pm
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POSITIVE IMPACT
Beacon Roofing Supply's Q2 preliminary results and plans to buy back shares are expected to have a positive impact on its stock. The company's shares are already trading higher.
The company's strong Q2 preliminary results and plans to buy back shares are likely to instill confidence in investors, leading to a rise in the stock price. The fact that the shares are already trading higher supports this analysis.
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