The distributor of residential and non-residential roofing materials in the U.S. and Canada faced many difficult factors in 2014, analysts said.
"With approximately $80 oil, we assume single price increases in 2015. We think Beacon's M&A prospects remain numerous, yet we think positive price catalysts amid falling asphalt are few, likely offsetting any near-term benefit from demand outside of a major storm catalyst," analysts said.
"We lower our FY14 EPS to $1.22 from $1.24 (modestly down price) and FY15 EPS to $1.58 from $1.79 on modestly lower residential prices and gross margins not offsetting still favorable commercial trends," analyst added.
Shares of Beacon Roofing Supply closed up 1.03% at $28.51 yesterday.
Separately, TheStreet Ratings team rates BEACON ROOFING SUPPLY INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate BEACON ROOFING SUPPLY INC (BECN) a HOLD. The primary factors that have impacted our rating are mixed --some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."