Builders FirstSource Falls Over 17% After Q1 Earnings - What's Going On?
Portfolio Pulse from Nabaparna Bhattacharya
Builders FirstSource, Inc. (NYSE:BLDR) shares fell over 17% following its Q1 earnings report. Despite beating analyst expectations with adjusted EPS of $2.65 and quarterly sales of $3.891 billion, the company saw a decrease in gross profit by 5.2% and a 14.4% decline in adjusted EBITDA. The drop in gross profit margin and adjusted EBITDA margin was attributed to a shift in product mix towards lower-margin products and margin normalization. Operating cash flow also decreased significantly. The company reiterated its 2024 net sales outlook.
May 07, 2024 | 4:52 pm
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
Builders FirstSource shares dropped over 17% after reporting Q1 earnings, with a decrease in gross profit and adjusted EBITDA despite beating sales and EPS estimates.
The significant drop in BLDR's stock price is directly related to the reported decrease in gross profit and adjusted EBITDA, which signals potential operational challenges despite beating top-line sales and EPS estimates. The decline in operating cash flow and the negative reaction to the earnings report suggest investor concerns over profitability and cost management, impacting short-term stock performance.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100