Builders FirstSource Second Quarter Earnings Sneak Peek

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Builders FirstSource, Inc. (NASDAQ:BLDR) will unveil its latest earnings on Thursday, July 19, 2012. Builders FirstSource is a supplier and manufacturer of structural and related building products for residential new construction.

Builders FirstSource, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for a loss of 5 cents per share, a narrower loss from the year-earlier quarter net loss of 8 cents. During the past three months, the average estimate has moved up from a loss of 7 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at a loss of 5 cents during the last month.

Past Earnings Performance: Last quarter, the company beat estimates by 3 cents, coming in at net loss of 11 cents per share against an estimate of a loss of. The company also topped expectations in the fourth quarter of the last fiscal year.

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Stock Price Performance: Between April 18, 2012 and July 13, 2012, the stock price rose 97 cents (24.7%), from $3.93 to $4.90. The stock price saw one of its best stretches over the last year between June 21, 2012 and July 3, 2012, when shares rose for nine straight days, increasing 38.2% (+$1.49) over that span. It saw one of its worst periods between July 26, 2011 and August 8, 2011 when shares fell for 10 straight days, dropping 33.1% (-84 cents) over that span.

Wall St. Revenue Expectations: Analysts are projecting a rise of 18.7% in revenue from the year-earlier quarter to $245 million.

A Look Back: In the first quarter, the company’s loss narrowed to a loss of $19.2 million (20 cents a share) from a loss of $21.2 million (22 cents) a year earlier, beating analyst expectations. Revenue rose 34.7% to $219.4 million from $162.8 million.

Key Stats:

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 20.4% in the third quarter of the last fiscal year and 31% in the fourth quarter of the last fiscal year before climbing again in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.42 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 4.33 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 29.7% to $95.8 million while assets rose 2.5% to $327.5 million.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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