Core Viewpoint - Beacon Roofing Supply rejected an $11 billion takeover bid from QXO, stating the offer significantly undervalues the company [2] Company Summary - Beacon Roofing Supply shares increased by 7.7% to $117.18, with trading volume higher than average [1] - The company is expected to report quarterly earnings of $1.69 per share, reflecting a year-over-year decline of 1.7%, while revenues are projected to be $2.42 billion, an increase of 5.3% from the previous year [3] - The consensus EPS estimate for Beacon Roofing has been revised down by 9.6% over the last 30 days, indicating a negative trend in earnings estimate revisions [4] Industry Summary - Beacon Roofing operates within the Zacks Building Products - Retail industry, which includes other companies like Tecnoglass [4] - Tecnoglass has a consensus EPS estimate of $1.01 for its upcoming report, representing a year-over-year increase of 26.3% [5]

Beacon Roofing Supply, Inc. (BECN) , a leading distributor of roofing, waterproofing and exterior products, reported progress in its fourth-quarter expansion efforts for 2024.The company added two new branches and completed two acquisitions, enhancing its presence in Massachusetts, Missouri and Tennessee. The initiatives indicate Beacon’s focus on growing its service area and strengthening the company’s market position.More on Beacon's Recent Growth InitiativesBeacon continued its M&A growth strategy by acq ...

Investment Strategy - Value investing is a popular method to identify undervalued stocks with profit potential, relying on traditional analysis of key valuation metrics [2] - The Zacks Style Scores system helps identify stocks with specific traits, such as high Zacks Rank and "A" grades for Value, indicating high-quality value stocks [3] Company Analysis: Beacon Roofing Supply (BECN) - BECN currently holds a Zacks Rank of 2 (Buy) and an "A" grade for Value, suggesting strong investment potential [4] - The company's P/E ratio is 12.46, significantly lower than the industry average of 18.35, indicating potential undervaluation [4] - BECN's Forward P/E has ranged between 9.68 and 14.04 over the past 12 months, with a median of 11.50 [4] - The PEG ratio of BECN is 1.66, below the industry average of 1.93, suggesting the stock may be undervalued relative to its earnings growth potential [5] - BECN's PEG ratio has fluctuated between 1.14 and 1.74 over the past year, with a median of 1.47 [5] - The P/S ratio of BECN is 0.65, lower than the industry average of 0.88, indicating potential undervaluation based on sales performance [6] - BECN's P/CF ratio is 11.39, significantly lower than the industry average of 27.44, suggesting the stock is undervalued relative to its cash flow [7] - The P/CF ratio has ranged between 8.71 and 12.63 over the past 52 weeks, with a median of 10.26 [7] Conclusion - BECN appears to be undervalued based on multiple valuation metrics, including P/E, PEG, P/S, and P/CF ratios, compared to industry averages [4][5][6][7] - The company's strong earnings outlook further supports its potential as a high-quality value stock [8]

Beacon Roofing Supply, Inc. (BECN) is benefiting from the effective implementation of its Ambition 2025 targets and cost-reduction initiatives. The company’s emphasis on expanding through acquisitions, along with investments in digital and productivity enhancements, is expected to support its prospects.Shares of this largest publicly traded distributor of residential and non-residential roofing materials have gained 17.6% in the past year compared with the Zacks Building Products – Retail industry’s growth ...

It has been about a month since the last earnings report for Beacon Roofing Supply (BECN) . Shares have added about 22.5% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Beacon Roofing due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Beacon Q3 Earnings & Sales Miss, ...

Participants in the Zacks Building Products – Retail industry are poised to benefit from technological initiatives to enhance the e-commerce experience. Companies are strengthening, expanding online offerings and enhancing omni-channel capabilities. Industry players are also gaining from strategic acquisitions, supply-chain growth and digital innovations. Experts believe that the U.S. Federal Reserve’s recent rate cut also positions the industry participants to benefit from lower interest rates, which shoul ...

Beacon Roofing Supply, Inc. (BECN) reported lower-than-expected third-quarter 2024 results, with earnings and net sales missing the Zacks Consensus Estimate. The top line grew, while the bottom line declined year over year.See the Zacks Earnings Calendar to stay ahead of market-making news.The year-over-year growth in the top line was backed by continued benefits realized from greenfield locations and acquired branches, along with strong demand trends for non-discretionary repair and reroofing. During the q ...

Financial Performance - Net sales for the three months ended September 30, 2024, were $2,772.6 million, an increase from $2,584.3 million in the same period of 2023, representing a growth of 7.3%[82]. - Gross profit for the three months ended September 30, 2024, was $730.4 million, compared to $672.6 million in 2023, reflecting a gross margin increase from 26.0% to 26.3%[82][83]. - Net income for the three months ended September 30, 2024, was $145.3 million, down from $161.3 million in the same period of 2023, resulting in a net income margin decrease from 6.3% to 5.2%[82][83]. - Total net sales for the nine months ended September 30, 2024, were $7.36 billion, up from $6.82 billion in 2023[97]. - Net income attributable to common stockholders was $278.1 million in 2024, compared to a net loss of $122.9 million in 2023, resulting in a basic net income per share of $4.43[111]. - Net income margin decreased to 3.8% in 2024 from 4.9% in 2023, reflecting changes in operating expenses and income[98]. Operating Expenses - Operating expenses increased to $483.7 million in Q3 2024 from $418.8 million in Q3 2023, with selling, general, and administrative expenses rising to 15.5% of net sales from 14.5%[82][83]. - SG&A expenses increased by 14.9% to $430.2 million in 2024, up from $374.3 million in 2023, primarily due to higher payroll and operating costs[88]. - SG&A expenses rose by 14.8% to $1.23 billion, with total SG&A as a percentage of net sales increasing to 16.7% from 15.7%[103]. Cash Flow and Financing Activities - Net cash provided by operating activities decreased to $59.6 million in 2024 from $525.7 million in 2023, a decline of $466.1 million primarily due to unfavorable changes in working capital[129]. - Net cash used in investing activities increased to $482.2 million in 2024 from $144.9 million in 2023, an increase of $337.3 million primarily due to increased acquisitions[130]. - Net cash provided by financing activities was $407.7 million in 2024, a significant increase of $786.5 million compared to net cash used of $378.8 million in 2023[131]. Share Repurchase and Stock Information - The company repurchased all 400,000 shares of Preferred Stock for $805.4 million, resulting in a repurchase premium of $414.6 million recorded as a reduction to retained earnings[78]. - The company announced a share repurchase program allowing for the purchase of up to $500.0 million of common stock, with an increase of approximately $387.9 million authorized in February 2023[134]. - Under the May 2024 ASR Agreement, the company repurchased $225.0 million of common stock, receiving an initial delivery of 1,927,608 shares[134]. - The average price per share repurchased in 2024 was $93.38, compared to $83.89 in 2023[135]. - As of September 30, 2024, approximately $164.1 million remained available for repurchases under the share repurchase program[136]. Growth and Expansion - The company opened 17 greenfield locations and acquired 40 branches during the nine months ended September 30, 2024, contributing $412.7 million and $594.9 million to net sales, respectively[77]. - Digital sales increased by 25.5% compared to the previous year, indicating strong growth in the company's digital commerce platform[77]. - The company’s Ambition 2025 framework aims to drive growth and improve operational performance, with a focus on enhancing customer service and expanding market presence[77]. - Organic net sales totaled $2.63 billion, reflecting a 1.7% increase year-over-year, driven by a 1-2% increase in weighted-average selling price[85]. - Organic net sales rose by 3.5% to $7.06 billion, driven by a 2-3% increase in estimated organic volume and a 1-2% increase in weighted-average selling price[100]. Tax and Interest Expenses - The effective tax rate for 2024 was 26.6%, slightly down from 27.0% in 2023, with an expected range of 26.0% to 27.0% for the year[94]. - Interest expense rose to $48.7 million in 2024, up from $35.2 million in 2023, attributed to higher average debt balances[93]. - Interest expense increased to $132.7 million in 2024, compared to $89.0 million in 2023, primarily due to higher average debt balances[107]. Adjusted Financial Metrics - Adjusted EBITDA for the three months ended September 30, 2024, was $325.2 million, compared to $309.6 million for the same period in 2023, indicating a growth of 5.3%[120]. - Adjusted Net Income for the three months ended September 30, 2024, was $176.9 million, slightly down from $180.0 million in the same period of 2023, representing a decrease of 0.6%[118]. - For the three months ended September 30, 2024, total adjusting items amounted to $42.3 million, compared to $25.1 million for the same period in 2023, reflecting a year-over-year increase of 68.5%[114]. - The company’s total adjusting items for the nine months ended September 30, 2024, were $99.3 million, compared to $76.4 million for the same period in 2023, reflecting a year-over-year increase of 30.0%[114]. Market and Seasonal Trends - The company noted that demand for exterior building materials is closely correlated to seasonal changes, with higher sales typically in the quarters ending June 30, September 30, and December 31[121].

Beacon Roofing Supply, Inc. (NASDAQ:BECN) Q3 2024 Earnings Conference Call October 31, 2024 8:30 AM ET Company Participants Binit Sanghvi - Vice President of Capital Markets and Treasurer Julian Francis - President and Chief Executive Officer Prithvi Gandhi - Chief Financial Officer Conference Call Participants Philip Ng - Jefferies Group LLC Brian Biros - Thompson Research Group Ryan Merkel - William Blair & Company Ketan Mamtora - BMO Capital Markets Michael Rehaut - JPMorgan Chase & Co. Michael Dahl - RB ...

| --- | --- | --- | --- | |--------------------------------|-------|-------|-------| | | | | | | 2024 | | | | | Q3 2024 EARNINGS PRESENTATION | | | | | OCTOBER 31, 2024 | | | | Disclosure Notice This presentation contains information about management's view of the Company's future expectations, plans and prospects that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. In addition, oral statements made by our directors ...