TopBuild Corp. (BLD) shares experienced a pre-market plunge of 5.18% on Tuesday, following the company's mixed fourth-quarter earnings report and underwhelming fiscal 2025 sales guidance.
The insulation products company reported fourth-quarter revenue of $1.31 billion, in line with Wall Street estimates. However, TopBuild's fiscal 2025 sales guidance fell short of expectations, projecting a range of $5.05 billion to $5.35 billion, compared to the consensus estimate of $5.46 billion.
The lower-than-anticipated sales outlook for the current fiscal year appears to have dampened investor sentiment, leading to the pre-market sell-off. Despite the company citing tailwinds such as low housing inventory, population growth, and initiatives to reduce energy consumption, analysts may have anticipated a more robust sales forecast.