Builders FirstSource ( NYSE: BLDR ) shares are climbing 8.4% in Monday premarket trading after the building products firm easily topped Wall Street expectations, highlighted by core organic growth, commodity inflation and acquisitions.
In July, the company acquired lumber and hardware supplier HomCo to leverage "BFS’s value-added solutions for new growth opportunities in the Arizona market," said CEO and President Dave Flitman.
Adjusted EPS of $6.26 at June 30 breezed past the average analyst estimate of $3.04 and jumped from $2.76 in the year-ago quarter.
Q2 revenue of $6.93B also beat the consensus of $5.55B and rose from $5.58B in Q2 2021.
Value-added products sales perked up to $1.22B in Q2 from $1.94B in Q2 2021.
Lumber and lumber sheet goods sales for Q2 were $2.8B compared with $2.6B in Q2 2021.
Adjusted EBITDA was $1.51B in Q2, up from $835.8M in Q2 of last year.
Adjusted EBITDA margin of 21.8% in Q2 vs. 15.0% in Q2 a year ago.
For 2022, we remain focused on delivering strong double-digit base business growth and significant free cash flow,” said CFO Peter Jackson.
At the beginning of June, Builders FirstSource priced a $700M senior notes offering .
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Builders FirstSource stock advances after Q2 results bolstered by commodity inflation