Beacon Roofing Q3 sales up nearly 60%
Beacon Roofing Supply reported third quarter 2018 net sales increased 59.4% to a third quarter record of $1.93 billion, up from $1.21 billion in 2017.
Residential roofing product sales increased 23.4%, non-residential roofing product sales increased 42.1%, and complementary product sales increased 204.6% over the prior year. Existing markets sales, excluding acquisitions, increased 2.0% for the quarter.
The Herndon, Va.-based company also reported a net income of $49.4 million for the third quarter, nearly an 11% increase from a net income of $44.7 million for the third quarter 2017.
At the start of 2018, Beacon completed its acquisition of Allied Building Products Corp. in a $2.62 billion cash deal. Beacon operates 554 branches throughout 50 states in the United States and 6 provinces in Canada.
“We recognize that weather events may cause short-term demand to fluctuate geographically, however our long-term sales trajectory shows a much greater level of consistency given our sizeable repair and remodel (R&R) business,” said Paul Isabella, president and CEO of Beacon Roofing Supply.
Despite the gains in sales and earnings, shares of BECN dropped almost 14% in trading following the report, which failed to meet Wall Street's expectations.
Looking ahead, Isabella said that the roofing distributor will continue to combat rising material costs while expanding its business.
“Beacon will remain a disciplined leader on pricing and we will continue to distinguish ourselves through strategic investments in our people and technology, and by expanding the depth and breadth of our product offerings,” he said.
Residential roofing product sales increased 23.4%, non-residential roofing product sales increased 42.1%, and complementary product sales increased 204.6% over the prior year. Existing markets sales, excluding acquisitions, increased 2.0% for the quarter.
The Herndon, Va.-based company also reported a net income of $49.4 million for the third quarter, nearly an 11% increase from a net income of $44.7 million for the third quarter 2017.
At the start of 2018, Beacon completed its acquisition of Allied Building Products Corp. in a $2.62 billion cash deal. Beacon operates 554 branches throughout 50 states in the United States and 6 provinces in Canada.
“We recognize that weather events may cause short-term demand to fluctuate geographically, however our long-term sales trajectory shows a much greater level of consistency given our sizeable repair and remodel (R&R) business,” said Paul Isabella, president and CEO of Beacon Roofing Supply.
Despite the gains in sales and earnings, shares of BECN dropped almost 14% in trading following the report, which failed to meet Wall Street's expectations.
Looking ahead, Isabella said that the roofing distributor will continue to combat rising material costs while expanding its business.
“Beacon will remain a disciplined leader on pricing and we will continue to distinguish ourselves through strategic investments in our people and technology, and by expanding the depth and breadth of our product offerings,” he said.