BECN Earnings Prediction
The chart below shows how BECN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, BECN sees a -1.04% change in stock price 10 days leading up to the earnings, and a +1.49% change 10 days following the report. On the earnings day itself, the stock moves by -0.37%. This data can give you a slight idea of what to expect for the next quarter's release.
BECN Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.40B
4.53%
-13.31%
Gross Margin
23.51%
-1.09%
-3.69%
Operating Margin
6.57%
-7.59%
-26.18%
Net Margin
3.48%
-15.94%
-33.59%
EPS
1.32
-12.00%
-42.61%
No Data Available
BECN Earnings Analysis
Beacon Roofing Supply Inc Corporation (BECN.O) Earnings Conference Call
Positive
Quarterly Performance Milestone: Record fourth quarter results achieved, with net sales, adjusted EBITDA, and cash flow all reaching new highs.
Sales Growth Analysis: Sales per day increased approximately 3% year-over-year to $2.4 billion, driven by contributions from recently acquired branches.
Strong Gross Margin Performance: Gross margin came in at the high end of guidance, with average selling prices rising in the quarter due to strong execution.
Strong Cash Flow Generation: Generated nearly $360 million in cash flow during the fourth quarter, enabling investment in growth initiatives such as greenfield locations and acquisitions.
Greenfield Expansion Success: Successfully opened 19 greenfield locations across 12 states and two Canadian provinces, contributing over $180 million to the top line in 2024.
Digital Sales Growth: Digital sales grew approximately 20% year-over-year, reaching about 16% of total sales, enhancing customer loyalty and margins.
Private Label Sales Growth: Private label sales increased by approximately 7%, with the TRI-BUILT brand yielding significantly higher margins compared to alternatives.
Productivity Improvement: Sales per hour worked increased by approximately 6% year-over-year, achieving a record level of productivity.
Successful Integration Performance: Acquired branches from the class of 2022 delivered double-digit EBITDA margins, indicating successful integration and performance.
Shareholder Return via Repurchases: Returned $225 million to shareholders through share repurchases, reducing the share count by more than 4%.
EBITDA Contribution Success: Achieved a $20 million contribution to adjusted EBITDA from the bottom quintile branch initiative, surpassing the Ambition 2025 target a year early.
Negative
Q4 Sales Decline: Sales slowdown in Q4, particularly in December, with sales per day significantly below typical trends, indicating a drop in demand.
Organic Volume Decline: Organic volumes decreased approximately 3% to 4% on a per day basis, highlighting challenges in maintaining sales levels without acquisitions.
Residential Roofing Sales Stagnation: Residential roofing sales were lower by less than 1% on a per day basis, suggesting a stagnation in this key market segment.
Rising Operating Expenses Concerns: Adjusted operating expenses increased by approximately $25 million compared to the prior year quarter, raising concerns about cost management amidst declining sales.
Cash Flow Concerns: Despite record cash flow, the majority was generated in Q4, indicating potential issues with cash generation throughout the year.
Inventory Management Concerns: Inventory levels increased year-over-year by $180 million, raising concerns about inventory management and potential overstocking issues.
Market Response Challenges: The company acknowledged missed opportunities in responding to market dynamics, particularly regarding interest rates and overhead management.
Residential Reroofing Market Decline: Expectations for 2025 indicate a decline in residential reroofing market demand, with anticipated sales per day down 3% to 5% compared to the prior year quarter, reflecting ongoing market challenges.
BECN FAQs
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BECN Earning Call Sentiment
Beacon Roofing Supply, Inc. (BECN) Q4 2024 Earnings Call Transcript
BECN.O
0.31%Positive
The earnings call summary presents mixed signals. Positive elements include a strong share buyback program, a 4.5% increase in net sales, and improved cash flow. However, challenges such as supply chain issues, regulatory uncertainties, and declining market demand in reroofing temper enthusiasm. The Q&A section reveals cautious optimism with some improvement in demand but also highlights management's avoidance of specifics on tariffs and costs. Overall, the lack of clear guidance and mixed market conditions suggest a neutral stock price movement in the short term.
