Beacon Roofing forecasts Q2 loss
Citing poor weather conditions as the primary culprit, Beacon Roofing Supply has forecast a loss for its second quarter ending on March 31.
The roofing and building products distributor, with more than 500 branches in the United States and Canada, said it did not want to surprise investors.
Beacon is estimating a second quarter net loss of $76,000 to $69,000 along with an adjusted net loss between $37,500 and $30,500. The Herndon, Va.-based company is the largest publicly traded roofing distributor.
Shares of Beacon closed at $34.11 on March 25, up 2.37%.
“Although the second quarter typically is our most difficult quarter, extremely harsh weather conditions, mostly in February and early March, will result in a quarterly adjusted EPS miss that we believe is appropriate to highlight early to the investment community in the interest of transparency,” Paul Isabella, president and CEO of Beacon Roofing said in a statement issued on March 26.
“Higher-than-normal seasonal pressures have caused margins to decline more than anticipated during the quarter, and we have experienced difficulties in reducing variable expenses given the weather volatility,” Isabella added, noting that the “circumstances will be isolated to the second quarter, and we anticipate re-capturing some of the quarter’s deferred volumes and margin during the second half of 2019.”
Beacon Roofing reported a net loss of $72.7 million in the second quarter 2018.
The roofing and building products distributor, with more than 500 branches in the United States and Canada, said it did not want to surprise investors.
Beacon is estimating a second quarter net loss of $76,000 to $69,000 along with an adjusted net loss between $37,500 and $30,500. The Herndon, Va.-based company is the largest publicly traded roofing distributor.
Shares of Beacon closed at $34.11 on March 25, up 2.37%.
“Although the second quarter typically is our most difficult quarter, extremely harsh weather conditions, mostly in February and early March, will result in a quarterly adjusted EPS miss that we believe is appropriate to highlight early to the investment community in the interest of transparency,” Paul Isabella, president and CEO of Beacon Roofing said in a statement issued on March 26.
“Higher-than-normal seasonal pressures have caused margins to decline more than anticipated during the quarter, and we have experienced difficulties in reducing variable expenses given the weather volatility,” Isabella added, noting that the “circumstances will be isolated to the second quarter, and we anticipate re-capturing some of the quarter’s deferred volumes and margin during the second half of 2019.”
Beacon Roofing reported a net loss of $72.7 million in the second quarter 2018.