## BlueLinx Holdings (BXC) Earnings Preview: What to Expect on October 29th
Investors are eagerly awaiting BlueLinx Holdings (BXC) to release its quarterly earnings on Tuesday, October 29th. The anticipation is high, with investors hoping for not only a beat on EPS estimates but also positive guidance for the upcoming quarter.
While earnings performance is certainly important, market reactions are often driven by the guidance provided by companies. New investors should be aware of this key factor when analyzing earnings releases.
Looking Back at Historical Earnings Performance
Last quarter, BlueLinx Holdings missed EPS by $0.06, which led to a 0.24% drop in the share price the following day. To better understand the company’s recent trend, let’s review its past performance and the resulting price changes:
| Quarter | EPS Estimate | EPS Actual | Price Change % |
|————-|————-|————-|—————-|
| Q2 2024 | 1.74 | 1.68 | -0.0% |
| Q1 2024 | 1.35 | 2.14 | -8.0% |
| Q4 2023 | 1.67 | 2.94 | -2.0% |
| Q3 2023 | 2.85 | 2.98 | 8.0% |
Current Stock Performance
As of October 25th, BlueLinx Holdings’ shares were trading at $104.18. Over the past 52 weeks, the shares have gained 49.98%. These positive returns indicate a bullish sentiment among long-term shareholders going into this earnings release.
Analyst Insights: What are the Experts Saying?
For investors, understanding market sentiment and expectations within the industry is crucial. Here’s a look at the latest insights surrounding BlueLinx Holdings from industry analysts:
* A total of 2 analyst ratings have been received for BlueLinx Holdings, with the consensus rating being
Buy
.* The average one-year price target stands at $136.0, suggesting a potential 30.54% upside.
Comparing BlueLinx Holdings to Its Industry Peers
To gain a deeper understanding of BlueLinx Holdings’s performance within the market, let’s compare its analyst ratings and average 1-year price targets to three key industry players: Xometry, Custom Truck One Source, and MRC Global.
| Company | Consensus Rating | Average 1-Year Price Target | Potential Upside/Downside |
|————————|—————–|—————————–|————————–|
| BlueLinx Holdings | Buy | $136.0 | 30.54% Upside |
| Xometry | Outperform | $24.5 | 76.48% Downside |
| Custom Truck One Source | Outperform | $6.0 | 94.24% Downside |
| MRC Global | Buy | $15.0 | 85.6% Downside |
Peer Analysis Summary
Key metrics for Xometry, Custom Truck One Source, and MRC Global are highlighted below, providing insights into their respective standings within the industry and offering comparative performance data:
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|————————|————–|—————-|—————|——————-|
| BlueLinx Holdings | Buy | -5.83% | $122.44M | 2.20% |
| Xometry | Outperform | 19.45% | $52.88M | -4.31% |
| Custom Truck One Source | Outperform | -7.40% | $89.27M | -2.79% |
| MRC Global | Buy | -4.48% | $173M | 4.72% |
Key Takeaway:
BlueLinx Holdings ranks at the bottom in terms of Revenue Growth among its peers. It is in the middle for Gross Profit. However, it stands at the top for Return on Equity.Unveiling the Story Behind BlueLinx Holdings
BlueLinx Holdings Inc is a leading wholesale distributor of residential and commercial building products. Its diverse product offerings are split into two main categories:
*
Structural Products:
Includes items such as lumber, plywood, oriented strand board, rebar, and remesh.*
Specialty Products:
Includes items such as engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products.The company’s operations are conducted across the United States.
Understanding the Numbers: A Financial Deep Dive
Market Capitalization Analysis:
BlueLinx Holdings’s market capitalization falls below industry benchmarks, indicating a smaller size compared to its peers. This positioning could be attributed to factors like growth expectations or operational capacity.Revenue Challenges:
BlueLinx Holdings’ revenue growth over the past three months has faced difficulties. As of June 30th, 2024, the company experienced a decline of approximately -5.83%. This signifies a decrease in top-line earnings. Compared to its competitors, BlueLinx Holdings encountered difficulties, with a growth rate lower than the industry average in the Industrials sector.Net Margin:
BlueLinx Holdings’ net margin falls below industry averages, highlighting challenges in achieving strong profitability. With a net margin of 1.87%, the company may face hurdles in effective cost management.Return on Equity (ROE):
BlueLinx Holdings’ ROE excels beyond industry benchmarks, reaching 2.2%. This indicates robust financial management and efficient use of shareholder equity capital.Return on Assets (ROA):
BlueLinx Holdings’ ROA is below industry averages, suggesting potential challenges in efficiently utilizing assets. With an ROA of 0.9%, the company may face hurdles in achieving optimal financial returns.Debt Management:
BlueLinx Holdings’ debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.97.To stay updated on all earnings releases for BlueLinx Holdings, visit our earnings calendar.