BlueLinx topline in line with consensus
Nov. 02, 2022 12:19 PM ETBlueLinx Holdings Inc. (BXC)By: Manshi Mamtora, CFA1 Comment
- BlueLinx (NYSE:BXC) Q3 shows topline revenue of $1.06B, in-line with consensus, up 9.2% Y/Y.
- Grew specialty product sales 13% to $724M, or 68% of total sales, consistent with growth strategy.
- Increased gross profit 24% to $189M and gross margin 210 basis points to 17.9%.
- Reported net income of $60M and grew adjusted EBITDA 27% to $100M and increased adjusted EBITDA margin 130 basis points to 9.4%.
- “Our third quarter results were highlighted by 9% year-over-year sales growth, 35% diluted EPS growth and 27% adjusted EBITDA growth,” said Dwight Gibson, President and Chief Executive Officer. “Specialty product sales grew 13% year-over-year to $724 million, or 68% of total sales, and gross profit from specialty product sales increased 3% to $151 million, or 80% of total gross profit. We generated $143 million of operating cash, a record level, which further strengthened our balance sheet. And we ended the quarter with net leverage of 0.7x, cash on hand of $229 million and available liquidity at an all-time high of $576 million.”
- GAAP EPS of $6.38 beats consensus by $0.47.
- Contributor commentary: 'BlueLinx: Amazing Results, 5x 2023 EPS'
- SA Author rating of Buy, Sell-side rating of Strong Buy, and Quant rating Buy with highest factor grades given to valuation.
- Previously (Nov. 1): BlueLinx Holdings GAAP EPS of $6.38 beats by $0.47, revenue of $1.06B in-line