NEW YORK (TheStreet) -- Beacon Roofing Supply (BECN) shares closed the day up 2.9% to $35.30 in trading on Friday despite posting second quarter earnings and revenue numbers below analysts estimates.
The residential and non-residential roofing materials distributor reported revenue of $384.9 million, well below analysts $422.79 million mark, with a net loss of -25 cents per share, 19 cents worse than analysts were expecting.
However, the companysaid that it expects to see pricing improvement and demand pick up in the second half of the fiscal year as the first two quarters are often the toughest of the roofing industry due to inclement weather.
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TheStreet Ratings team rates BEACON ROOFING SUPPLY INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate BEACON ROOFING SUPPLY INC (BECN) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."