Ahead Of The Bell: Beacon Roofing Supply
HARTFORD, Conn. (AP) ¿ Housing construction is picking up and demand is expected to rise for products from Beacon Roofing Supply Inc., an analyst said as he raised his rating on the company.
Analyst Jeffrey Germanotta of William Blair & Co. upgraded Beacon roofing to "Outperform" from "Market Perform" on Tuesday as the company reported lower fourth-quarter earnings that still exceeded Wall Street's expectations.
Demand should improve for Beacon Roofing products in the second half of 2010, new housing construction and work on deferred maintenance will likely pick up in the spring and acquisitions should begin again next year, Germanotta said in a client note.
However, profitability in the short run will be hampered by seasonally weak demand at the end of the year and early 2010, he said.Beacon Roofing, based in Peabody, Mass., reported that it earned $19.3 million, or 42 cents per share, down 23 percent from $24.9 million, or 55 cents per share in the same quarter last year. Revenue for the quarter ended Sept. 30 was $487.7 million, down 14 percent from $567.2 million in the year-ago quarter. Analysts surveyed by Thomson Reuters expected earnings of 38 cents per share on revenue of $489.2 million. The estimates typically exclude one-time items. For the full year, Beacon Roofing earned $52.4 million, or $1.15 per share, up from $40.3 million, or 90 cents per share, a year earlier. Annual revenue slipped to $1.73 billion from $1.78 billion in fiscal 2008. Analysts expected earnings of $1.12 per share on revenue of $1.73 billion, according to a survey by Thomson Reuters.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV