Beacon Roofing Supply (BECN) posted quarterly earnings of $ 0.23 per share, beating Zacks’ consensus estimate of $ 0.01 per share. That’s a loss of $ 0.27 per share a year ago. These figures have been adjusted for one-off effects.
This quarterly report corresponds to a profit surprise of 2,200%. A quarter ago, this roofer dealer was expected to make $ 0.64 per share when it actually made a profit of $ 0.92, which is a surprise of 43.75%.
In the past four quarters, the company has exceeded EPS consensus estimates four times.
Beacon Roofing, part of the retail industry Zacks Building Products – Retail, had sales of $ 1.32 billion for the quarter ended March 2021, beating Zacks Consensus estimate by 0.10%. This corresponds to sales of 1.46 billion US dollars in the previous year. The company has exceeded consensus sales estimates three times in the past four quarters.
The sustainability of the stock’s immediate price movement based on recently released numbers and future earnings expectations will depend primarily on management comments on the earnings call.
Beacon Roofing shares are up around 42.3% year-to-date, while the S&P 500 is up 11%.
What’s Next for Beacon Roofing?
While Beacon Roofing has outperformed the market so far this year, investors are wondering: what’s next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors fix this is the company’s earnings outlook. This includes not only the current consensus expectations for the quarters ahead, but also how those expectations have changed recently.
Empirical research shows a strong correlation between short-term stock movements and trends in revisions of earnings estimates. Investors can keep track of such revisions themselves, or they can rely on a proven rating tool like Zacks Rank, which has an impressive track record in leveraging the capabilities of earnings estimate revisions.
The story goes on
Prior to this publication of the results, the trend towards the estimated overhaul of Beacon Roofing was mixed. While the extent and direction of the estimated revisions could change following the company’s just-released earnings report, the current status results in a Zacks rank of 3 (hold) for the stock. It is therefore expected that the shares will perform in line with the market in the near future. The full list of today’s Zacks # 1 Rank (Strong Buy) stocks can be found here.
It will be interesting to see how the estimates for the coming quarters and the current fiscal year change in the coming days. The current EPS consensus estimate is $ 1.04 on revenue of $ 1.7 billion for the next quarter and $ 3.17 on revenue of $ 6.46 billion for the current fiscal year.
Investors should be aware that the outlook for the industry can also have a material impact on the performance of the stock. In terms of Zacks industry ranking, Building Products – Retail is currently in the top 41% of the 250+ Zacks industries. Our research shows that the top 50% of Zacks industries outperform the bottom 50% by a factor of more than 2 to 1.
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Beacon Roofing Supply, Inc. (BECN): Free Inventory Analysis Report
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