Building services and installation company TopBuild (NYSE:BLD) will be reporting earnings this Tuesday before market open. Here’s what investors should know.
TopBuild met analysts’ revenue expectations last quarter, reporting revenues of $1.23 billion, down 3.6% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates but full-year EBITDA guidance slightly missing analysts’ expectations.
Is TopBuild a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting TopBuild’s revenue to decline 4.5% year on year to $1.30 billion, a reversal from the 3.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $5.09 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. TopBuild has missed Wall Street’s revenue estimates five times over the last two years.
Looking at TopBuild’s peers in the home builders segment, some have already reported their Q2 results, giving us a hint as to what we can expect. D.R. Horton’s revenues decreased 7.4% year on year, beating analysts’ expectations by 5%, and Taylor Morrison Home reported revenues up 2%, topping estimates by 3.9%. D.R. Horton traded up 12.9% following the results while Taylor Morrison Home was down 9.1%.
Read our full analysis of D.R. Horton’s results here and Taylor Morrison Home’s results here.
Investors in the home builders segment have had steady hands going into earnings, with share prices flat over the last month. TopBuild is up 9.5% during the same time and is heading into earnings with an average analyst price target of $394.20 (compared to the current share price of $376.30).
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