By Angela Palumbo
Builders FirstSource stock was having its worst day since 2020 after the building-materials supplier's first-quarter net income declined sharply.
Builders FirstSource reported first-quarter adjusted earnings of $2.65 a share on revenue of $3.89 billion. Analysts surveyed by FactSet were expecting earnings of $2.30 a share on revenue of $3.83 billion.
Net income of $258.8 million fell from the $333.8 million recorded in the same period last year. The company said the decline was driven by lower gross profit and higher operating expenses, largely due to acquisitions.
"As we expected, a weakening Multi-Family market and higher mortgage rates driving affordability challenges were headwinds to start the year, " Chief Executive Dave Rush added in a press release.
Shares of Builders FirstSource fell 15% to $171.46 and were on pace for their largest percentage decrease since March 16, 2020. The stock, which has gained 4.9% this year, was the leading decliner in the S&P 500 on Tuesday. The S&P 500 was up 0.2%.
Meanwhile, shares of competitor TopBuild were dropping 2.2% to $408.48. TopBuild reported first-quarter adjusted earnings of $4.81 a share on revenue of $1.28 billion. Analysts surveyed by FactSet were expecting earnings of $4.58 a share on revenue of $1.3 billion. The company raised its sales outlook for the year to be between $5.4 billion and $5.6 billion, up from prior estimates of $5.36 billion to $5.56 billion. TopBuild also said its board authorized a buyback of $1 billion of stock.
Write to Angela Palumbo at angela.palumbo@dowjones.com
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(END) Dow Jones Newswires
May 07, 2024 10:58 ET (14:58 GMT)
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