Building products supplier TopBuild reported better-than-expected first-quarter earnings Tuesday and announced a $1 billion stock buyback program. BLD shares edged higher early as S&P 500 stock Builders FirstSource sank after topping Q1 expectations and reaffirming full-year guidance.
TopBuild Q1 earnings grew 10% to $4.81 per share with revenue increasing more than 1% to $1.28 billion. Analysts predicted first-quarter EPS of $4.58 and sales totaling $1.3 billion.
TopBuild also raised its 2024 revenue outlook to $5.4-$5.6 billion, up from its previous expectation of $5.36-$5.56 billion. Coming off Q1, the company reported that its board had authorized repurchasing up to $1 billion in outstanding shares. The new authorization is in addition to the $154 million remaining from its previous buyback program.
"Our new repurchase authorization demonstrates management and our board of directors' continued confidence in and support of our long-term strategy and the importance of returning capital to shareholders," Chief Executive Robert Buck said in the earnings statement.
TopBuild stock fell 3% to 404.63 during market action on Tuesday. BLD shares advanced 3.7% to 417.57 Monday. The stock has gained more than 11% in 2024.
S&P 500: Builders FirstSource Earnings
Meanwhile, S&P 500 stock Builders FirstSource dropped 13.2% to 174.08 Tuesday. BLDR gained 2.6% Monday, closing at 200.88 and is up 20% on the year, outperforming the broader S&P 500 index.
Builders FirstSource saw Q1 earnings fall more than 10% to $2.65 with sales coming in at $3.89 billion, remaining flat compared to Q1 2023. Analysts had forecast EPS of $2.30 and revenue of $3.82 billion.
The S&P 500 company also kept its 2024 outlook steady, with sales between $17.5-$18.5 billion and adjusted EBITDA to be in a range of $2.4-$2.8 billion.
TopBuild stock has a 95 Composite Rating out of 99. Shares also have a 93 Relative Strength Rating and a 94 EPS Rating.
BLDR has a has a 93 Composite Rating. The S&P 500 stock has a 92 Relative Strength Rating along with an 88 EPS Rating.
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