Published on 7 May 2024 on Zacks via Yahoo Finance

Builders FirstSource's (BLDR) Stock Dips Despite Q1 Earnings Beat

Builders FirstSource, Inc. BLDR reported better-than-expected results in first-quarter 2024. Both earnings and net sales surpassed the Zacks Consensus Estimate.However, earnings declined year over year and net sales rose slightly from the prior year. A weakening Multi-Family market and higher mortgage rates driving affordability challenges were major headwinds.Shares of this manufacturer and supplier of building materials dipped 12.9% in the pre-market trading session on May 7.On an impressive note, BLDR generated approximately $40 million in productivity savings related to operations excellence and supply-chain initiatives in the first quarter. For 2024, it expects to deliver $90-$110 million in productivity savings.

Earnings & Revenue Discussion

The company reported adjusted earnings per share (EPS) of $2.65, which beat the consensus mark of $2.42 by 9.5%. The reported figure declined 10.5% from the year-ago EPS figure of $2.96, due to lower adjusted net income, partially offset by share repurchases.