BLDR Earnings: Builders FirstSource Soars on Q4 Beat, $1B Buyback

Builders FirstSource (NYSE:BLDR) shares jumped by nearly 4% today after the building materials and associated services provider delivered better-than-anticipated numbers for the fourth quarter. Additionally, the company announced a major boost to its share buyback program.

In Q4, BLDR’s revenue declined by 4.7% year-over-year to $4.2 billion. Still, the figure came in ahead of expectations by $170 million. Further, EPS of $3.55 outpaced estimates by a wide margin of $1.10. The decline in the company’s top line was driven by lower core organic net sales and commodity deflation. Still, its adjusted EBITDA margin improved by 50 basis points to 16.5%.

While the macro environment remains challenging, BLDR is focusing on operating efficiency, investing in digital innovations, and enhancing its value-added products and services. For Fiscal Year 2024, BLDR expects net sales in the range of $17.5 billion to $18.5 billion. Adjusted EBITDA for the year is seen landing between $2.4 billion and $2.8 billion. This outlook incorporates the expectation of single-family starts rising in the mid-single digits and multi-family starts declining by 20% to 30% within BLDR’s geographies in 2024.

In another development, BLDR is increasing its current share repurchase program by $800 million to $1 billion. Notably, the company bought back shares worth $1.8 billion in 2023. The move lowered the company’s total outstanding shares by 12.2%. The execution of the new buyback program could provide a further boost to BLDR’s EPS growth over the coming quarters.  

Is BLDR a Good Investment?

With today’s price gains, BLDR’s stock price has rallied by nearly 149% over the past year.  Overall, the Street has a Moderate Buy consensus rating on Builders FirstSource alongside an average price target of $189.67. However, analysts’ views on the stock could see revisions following today’s earnings report.

Read full Disclosure