Builders FirstSource (BLDR) Q4 Earnings Report Preview: What To Look For

Building materials company Builders FirstSource (NYSE:BLDR) will be announcing earnings results tomorrow before market open. Here’s what to expect.

Builders FirstSource missed analysts’ revenue expectations by 4.6% last quarter, reporting revenues of $4.23 billion, down 6.7% year on year. It was a slower quarter for the company, with a miss of analysts’ Windows, doors & millwork revenue estimates and full-year revenue guidance missing analysts’ expectations.

Is Builders FirstSource a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Builders FirstSource’s revenue to decline 6.5% year on year to $3.88 billion, a further deceleration from the 4.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.22 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Builders FirstSource has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Builders FirstSource’s peers in the home construction materials segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Simpson delivered year-on-year revenue growth of 3.1%, beating analysts’ expectations by 4.3%, and Griffon reported a revenue decline of 1.7%, falling short of estimates by 0.8%. Simpson traded up 1.5% following the results while Griffon was also up 8.8%.

Read our full analysis of Simpson’s results here and Griffon’s results here.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the home construction materials stocks have shown solid performance, the group has generally underpeformed, with share prices down 4.2% on average over the last month. Builders FirstSource is down 11.8% during the same time and is heading into earnings with an average analyst price target of $198.01 (compared to the current share price of $147.92).

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