Benzinga | Feb 25, 2021 10:09AM EST

Earnings Preview for Builders FirstSource

On Friday, February 26, Builders FirstSource (NASDAQ:BLDR) will release its latest earnings report. Here is Benzinga's outlook for the company.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts expect Builders FirstSource earnings of $0.9 per share. Revenue will likely be around $2.57 billion, according to the consensus estimate. Builders FirstSource EPS in the same period a year ago totaled $0.4. Sales were $1.76 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The Wall Street consensus estimate for earnings would represent a 125.0% increase for the company. Revenue would be have grown 45.69% from the same quarter last year. Here is how the Builders FirstSource's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.65 0.32 0.28 0.35EPS Actual 0.82 0.67 0.34 0.40Revenue Estimate 2.27 B 1.79 B 1.77 B 1.76 BRevenue Actual 2.29 B 1.95 B 1.79 B 1.76 B

Stock Performance

Over the last 52-week period, shares are up 83.05%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Builders FirstSource is scheduled to hold the call at 09:00:00 ET and can be accessed here.