HERNDON, Va. - Beacon (NASDAQ:BECN), a Fortune 500 company specializing in the distribution of specialty building products, has completed the acquisition of Roofers Mart of Southern California, Inc., a move set to expand its service offerings to commercial contractors in the Los Angeles area.
This development, announced today, is part of Beacon's strategic growth plan and follows a series of seven acquisitions in 2024, signaling the company’s aggressive expansion in the commercial roofing market.
Roofers Mart, located in Walnut, California, has been a staple in the Los Angeles metro market for 40 years, providing roofing materials and services to local contractors.
With this acquisition, Roofers Mart will integrate Beacon's extensive catalog, including the TRI-BUILT® brand, and leverage additional resources to offer value-added services such as Beacon PRO+, designed to assist contractors in business growth. Greg Robles, CEO of Roofers Mart, expressed enthusiasm for the merger, emphasizing the enhanced quality and expertise that the combined entity will deliver to customers.
Nevin Holly, Beacon’s Regional Vice President, Pacific, praised the customer-focused approach of Greg Robles and his team, particularly in commercial roofing. Holly highlighted that the acquisition is illustrative of Beacon's commitment to growing its commercial roofing distribution and services.
Beacon has exceeded its Ambition 2025 revenue and shareholder return targets in the previous year and continues to progress toward realizing its full Ambition 2025 plan. The company's strategy includes the recent launch of TRI-BUILT® ISO commercial roofing insulation, further solidifying its position as a top distributor in North America.
Founded in 1928, Beacon operates over 560 branches throughout all 50 states in the U.S. and across 7 provinces in Canada. The company caters to a substantial customer base of nearly 100,000, offering products and support throughout the entire project lifecycle. Beacon also boasts a proprietary digital account management suite, Beacon PRO+, and its own private label brand, TRI-BUILT®.
This expansion aligns with Beacon's goals of footprint expansion and market growth in the commercial roofing sector. The information in this article is based on a press release statement from Beacon.
In other recent news, Beacon Roofing Supply (NASDAQ:BECN) has been making significant strides in the market. The company reported record first-quarter sales, surpassing the 10% growth mark compared to the previous year, with gross margins slightly exceeding their guidance at 24.7%. Additionally, Beacon has initiated a $225 million accelerated share buyback, a move that aligns with the company's strategy to enhance shareholder value.
The company has also expanded its footprint with the opening of new branches in Attleboro, Massachusetts, and Mississauga, Ontario, as part of its ongoing expansion strategy. These recent developments are part of Beacon's Ambition 2025 plan, which focuses on footprint expansion to drive above-market growth and better serve customers.
Analysts from BMO Capital Markets Corp. and Baird maintain an Outperform rating on Beacon, with price targets of $120.00 and $115.00 respectively. Truist Securities also adjusted its price target for Beacon Roofing Supply, increasing it to $95 from the previous $90, while maintaining a Hold rating on the stock.
According to analysts, Beacon's performance has been driven by its defensive market position, the less volatile nature of roofing demand, and its response to industry trends. They expect EPS for Q1/24 at $0.28, with full-year 2024 EPS estimated at $6.58 and revenue for the full year projected to reach $9,472 million.
The roofing sector is anticipated to maintain stable demand, with residential roofing volumes experiencing mid-single-digit growth. However, the non-residential sector presents a mixed picture, with flat volumes and a slight pricing decrease, although low-single-digit growth is forecasted for 2024.
InvestingPro Insights
As Beacon (NASDAQ:BECN) continues to fortify its market position through strategic acquisitions such as Roofers Mart of Southern California, Inc., the company's financial health and stock performance are of keen interest to investors. According to the latest data from InvestingPro, Beacon's market capitalization stands at a robust $5.67 billion, showcasing the company's substantial size and influence in the industry.
Investors tracking Beacon's profitability would note the company's P/E Ratio (Adjusted) for the last twelve months as of Q1 2024 at -144.16, suggesting that the market has expectations of future earnings growth. This aligns with the InvestingPro Tips that indicate net income is expected to grow this year, with analysts having revised their earnings upwards for the upcoming period.
The company's revenue growth also paints a picture of its upward trajectory, with a 9.73% increase in the last twelve months as of Q1 2024. This is further supported by the fact that Beacon's liquid assets exceed its short-term obligations, providing financial stability and the ability to invest in growth opportunities like the Roofers Mart acquisition. With nine analysts revising their earnings upwards and a prediction of profitability this year, the financial outlook for Beacon is optimistic.
For investors seeking deeper insights and additional tips on Beacon, InvestingPro offers a comprehensive suite of analytics and expert forecasts. Currently, there are seven more InvestingPro Tips available to guide investment decisions. To access these valuable insights, investors can visit https://www.investing.com/pro/BECN and use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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