Roofing materials distributor Beacon Roofing Supply (NASDAQ:BECN) will be reporting earnings tomorrow before market open. Here’s what to look for.

Beacon Roofing Supply met analysts’ revenue expectations last quarter, reporting revenues of $2.77 billion, up 7.3% year on year. It was a slower quarter for the company, with a miss of analysts’ organic revenue and adjusted operating income estimates.

Is Beacon Roofing Supply a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Beacon Roofing Supply’s revenue to grow 5.7% year on year to $2.43 billion, slowing from the 16.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.65 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Beacon Roofing Supply has missed Wall Street’s revenue estimates six times over the last two years.

Looking at Beacon Roofing Supply’s peers in the industrial distributors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Boise Cascade’s revenues decreased 4.7% year on year, missing analysts’ expectations by 0.7%, and DistributionNOW reported revenues up 2.9%, topping estimates by 3.4%. Boise Cascade traded down 8.1% following the results while DistributionNOW was up 21.5%.

Read our full analysis of Boise Cascade’s results here and DistributionNOW’s results here.

Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The U.S. Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the industrial distributors stocks have shown solid performance, the group has generally underperformed, with share prices down 5.6% on average over the last month. Beacon Roofing Supply is up 1.3% during the same time and is heading into earnings with an average analyst price target of $119.61 (compared to the current share price of $120.79).

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