BlueLinx Q2 Sales, EBITDA Crush Estimates; Guides Q3 Margin Above 18%
BXC sits 53% above its 52-week low of $44.78.
Summary
BlueLinx delivered a strong Q2, with sales of $814M beating the $793.72M consensus and adjusted EBITDA of $36M nearly doubling the $23.89M estimate. Adjusted net income of $9.1M also crushed the $3.12M forecast. The beat was broad-based, driven by specialty product growth from the Disdero acquisition and higher pricing, plus a $7.2M import duty benefit. Structural products also gained on lumber pricing and volumes. Management guided Q3 specialty gross margins to 18-19% and structural to 8.5-9.5%, with average daily sales volumes expected to rise both year-over-year and sequentially. The company also repurchased $2M in shares. This follows a Q1 net loss of $1.5M, making the sharp rebound notable. With the stock at $60.51 pre-release and a $75 median target, the magnitude of the beat could drive significant upward repricing.
At the time of this announcement, BXC was trading at $68.47 on NYSE in the Trade & Services sector, with a market capitalization of approximately $501.7M. The 52-week trading range was $44.78 to $87.88. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.