Builders FirstSource Inc (NYSE:BLDR) reported first-quarter FY23 sales decline of 31.7% year-on-year to $3.88 billion, beating the analyst consensus estimate of $3.58 billion.
- The sales fall was driven by declining single-family starts and commodity deflation, partially offset by growth from acquisitions and one additional selling day.
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- Gross profit decreased 25.2% to $1.4 billion, and the profit margin expanded 300 basis points to 35.3%.
- Selling, general, and administrative expenses dropped 6.6% to $904.2 million.
- Adjusted EBITDA decreased 36.9% Y/Y to $631.7 million, with the margin declining by 130 basis points to 16.3%.
- Adjusted EPS of $2.96 beat the analyst consensus of $1.51.
- The company held $144.4 million in cash and equivalents as of March 31, 2023. Cash provided by operating activities for the quarter totaled $654.4 million, with a free cash flow of $554.5 million.
- The company repurchased 7.5 million shares of common stock at an average price of $83.17 for $627.6 million.
- Outlook: Builders FirstSource sees Q2 sales of $4 billion – $4.2 billion against the consensus of $4.3 billion.
- It sees Q2 adjusted EBITDA of $525 million – $575 million with a margin of 13.1% – 13.7%.
- It expects FY23 capital expenditure of $325 million – $375 million.
- Price Action: BLDR shares are trading higher by 11.3% at $106 on the last check Wednesday.
Image courtesy of Builders FirstSource
