Installed Building Products Q2 revenue beats expectations
Overview
Installed Building Products Q2 revenue grows 3.1%, beating analyst expectations
Net income for Q2 increased 5.8% year-over-year to $69.0 million
Company repurchased 300,000 shares at a total cost of $49.2 million
Outlook
Company expects housing affordability to remain a challenge in near-term
Company targets $100 mln in annual revenue from acquisitions in 2025
Result Drivers
ACQUISITIONS - Revenue growth partly driven by recent acquisitions, including Pro Foamers, Inc., contributing $4 mln in annual revenue
INSTALLATION REVENUE - Installation revenue increased 2.6% to $715.6 mln, including sales from recent acquisitions
MARKET POSITIONING - Strong financial results attributed to high-value installation services and market positioning, per CEO Jeff Edwards
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $760.30 mln | $710.70 mln (10 Analysts) |
Q2 Net Income | $69 mln | ||
Q2 Gross Profit | $259.90 mln | ||
Q2 Operating Income | $101 mln | ||
Q2 Pretax Profit | $93.40 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the construction & engineering peer group is "buy."
Wall Street's median 12-month price target for Installed Building Products Inc is $183.00, about 15.7% below its August 6 closing price of $211.82
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 16 three months ago
Press Release:
