Builders FirstSource Tops Q2 Street Expectations, Sees FY23 Revenue Above Consensus


27% profits every 20 days?

This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.


Builders FirstSource Inc (NYSE:BLDR) reported a second-quarter FY23 sales decline of 34.6% year-on-year to $4.53 billion, beating the consensus of $4.25 billion.

The sales fall was driven by a decline in core organic net sales of 22.3% and commodity deflation of 16.2%, partially offset by acquisitions of 3.9%.

Gross profit decreased 33.9% to $1.6 billion, and the profit margin expanded 40 bps to 35.2%, reflecting a stronger mix in value-added products overall.

Adjusted EBITDA decreased 49% Y/Y to $768.8 million, with the margin declining by 480 bps to 16.3%.

Adjusted EPS of $3.89, beating the consensus of $2.69.

For the six months ended June 30, 2023, operating cash flow totaled $1.05 billion compared to $1.27 billion a year ago; and free cash was $0.8 billion.

As of June 30, 2023, liquidity was $0.9 billion, consisting of $0.8 billion in net borrowing availability under the revolving credit facility and ~$89.32 million of cash on hand.

The company repurchased 7 million shares at an average price of $103.68 for $722.7 million during the quarter.

"As we continue to assess our margin expectations based on our current mix and overall performance, we are confident that our long-term normalized gross margin percentage is now 29% or higher versus our previous expectation of 28% or higher. We believe our industry-leading scale, ongoing investments in value-added products and digital solutions, and strong financial position will lead to a double-digit Adjusted EBITDA margin this year and sustained growth in the years to come," commented Peter Jackson, CFO of Builders FirstSource.

FY23 Outlook: Builders FirstSource sees sales of $16.8 billion - $17.8 billion against the consensus of $16.46 billion.

It sees Adjusted EBITDA of $2.6 billion-$2.9 billion; and Adjusted EBITDA margin of 15%-17%.

Price Action: BLDR shares are trading higher by 1.80% at $149.40 on the last check Wednesday.


27% profits every 20 days?

This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.


ENTER TO WIN $500 IN STOCK OR CRYPTO

Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!

Posted In: EarningsEquitiesNewsGuidanceMarketsBriefs