Beacon Roofing Q3 Profit Declines - Update

(RTTNews) - Beacon Roofing Supply, Inc. (BECN) Friday reported a decline in the third-quarter profit, despite 6 percent growth in sales. Earnings per share missed analysts' estimates, while revenues came above view.

The company said the decline in profit was mainly due to lower gross margins from reduced selling prices as a result of a soft demand environment, and a continued unfavorable shift in sales mix to lower margin direct shipment and commercial business.

For the third quarter ended June 30, the company's net income declined to $26.8 million or $0.54 per share from $27.16 million or $0.55 per share last year.

On average, 14 analysts polled by Thomson Reuters expect the company to report profit per share of $0.58 for the quarter. Analyst's estimates typically exclude special items.

Quarterly sales, however rose 5.8 percent to $663.4 million from $627.17 million in 2013. Analysts estimated revenues of $662.94 million.

On an overall consolidated basis, residential roofing product sales increased 2.7 percent, non-residential roofing product sales were up 9.7 percent, and complementary product sales rose 6.4 percent over the prior year.

Paul Isabella, president and chief executive officer said, "We delivered a solid 5.8% growth for the quarter, even in the face of continued soft residential roofing demand. Our diversified product offering allowed us to take advantage of the strength of the current commercial roofing market."

Operating expenses advanced to $105 million from $99.38 million last year.

BECN closed Thursday's regular trading at $28.44 on the Nasdaq.