Beacon Roofing Supply, Inc. Just Missed Earnings - But Analysts Have Updated Their Models

The quarterly results for Beacon Roofing Supply, Inc. (NASDAQ:BECN) were released last week, making it a good time to revisit its performance. Revenues were in line with forecasts, at US$2.8b, although statutory earnings per share came in 11% below what the analysts expected, at US$2.30 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Beacon Roofing Supply after the latest results.

View our latest analysis for Beacon Roofing Supply

After the latest results, the 15 analysts covering Beacon Roofing Supply are now predicting revenues of US$10.2b in 2025. If met, this would reflect a reasonable 5.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 16% to US$7.00. Before this earnings report, the analysts had been forecasting revenues of US$10.1b and earnings per share (EPS) of US$7.11 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$112. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Beacon Roofing Supply, with the most bullish analyst valuing it at US$140 and the most bearish at US$95.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Beacon Roofing Supply's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.1% growth on an annualised basis. This is compared to a historical growth rate of 9.8% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.4% per year. Factoring in the forecast slowdown in growth, it seems obvious that Beacon Roofing Supply is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Beacon Roofing Supply's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$112, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Beacon Roofing Supply analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Beacon Roofing Supply that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.