Beacon Roofing Beats EPS Estimates, But Shares Fall

released its Q3 results after market close on Tuesday. Earnings per share came in above Wall Street consensus expectations, however, shares shares fell 5.09 percent. Beacon Roofing reported EPS of $0.77 and revenues of $1.15 billion. Analyst consensus had an EPS estimate of $0.76 and revenues of $1.15 billion. In the third quarter Beacon achieved a milestone with our first ever billion dollar quarter. Sales grew over 60 percent in the quarter, mainly from the RSG and the seven additional acquisitions made this year" said Paul Isabella, the Company's President and Chief Executive Officer. Organic sales grew 8.7 percent in the quarter, driven by our greenfield investments over the last four years and the increased storm activity in the Dallas metropolitan area. Aided by the continued shift to more residential sales, our gross margin grew to 24.5 percent of sales, up 90 basis points over the prior year and 70 basis points over the second quarter. We are continuing to see margin and operating expense benefit from the RSG synergies" stated Isabella. At the time of writing, Beacon Roofing traded at $44.01 in Tuesday's after-hours session, down 5.09 percent.