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Spotting Winners: Beacon Roofing Supply (NASDAQ:BECN) And Industrial Distributors Stocks In Q1


Radek Strnad /
2024/07/03 5:09 am EDT

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Beacon Roofing Supply (NASDAQ:BECN) and the best and worst performers in the industrial distributors industry.

Supply chain and inventory management are themes that grew in focus after COVID wreaked havoc on the global movement of raw materials and components. Distributors that boast a reliable selection of products–everything from hardhats and fasteners for jet engines to ceiling systems–and quickly deliver goods to customers can benefit from this theme. While e-commerce hasn’t disrupted industrial distribution as much as consumer retail, it is still a real threat, forcing investment in omnichannel capabilities to better interact with customers. Additionally, distributors are at the whim of economic cycles that impact the capital spending and construction projects that can juice demand.

The 24 industrial distributors stocks we track reported a slower Q1; on average, revenues beat analyst consensus estimates by 1.2%. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and industrial distributors stocks have had a rough stretch, with share prices down 7.2% on average since the previous earnings results.

Beacon Roofing Supply (NASDAQ:BECN)

Established in 1928, Beacon Roofing Supply (NASDAQ:BECN) distributes residential and commercial roofing materials and complementary building products.

Beacon Roofing Supply reported revenues of $1.91 billion, up 10.4% year on year, topping analysts' expectations by 1.4%. It was a decent quarter for the company, with an impressive beat of analysts' earnings estimates.

“Our record first quarter sales demonstrates the resilience of our business model. We generated organic growth across all three lines of business while delivering better than expected margins,” said Julian Francis, Beacon’s President & CEO.

Beacon Roofing Supply Total Revenue

The stock is down 9.9% since the results and currently trades at $87.91.

Is now the time to buy Beacon Roofing Supply? Access our full analysis of the earnings results here, it's free.

Best Q1: Transcat (NASDAQ:TRNS)

Serving the pharmaceutical, industrial manufacturing, energy, and chemical process industries, Transcat (NASDAQ:TRNS) provides measurement instruments and supplies.

Transcat reported revenues of $70.91 million, up 14.3% year on year, outperforming analysts' expectations by 3.4%. It was an incredible quarter for the company, with an impressive beat of analysts' earnings estimates.

Transcat Total Revenue

The stock is up 0.2% since the results and currently trades at $123.95.

Is now the time to buy Transcat? Access our full analysis of the earnings results here, it's free.

Weakest Q1: Karat Packaging (NASDAQ:KRT)

Founded as Lollicup, Karat Packaging (NASDAQ: KRT) distributes and manufactures environmentally-friendly disposable foodservice packaging solutions.

Karat Packaging reported revenues of $95.61 million, down 0.2% year on year, falling short of analysts' expectations by 4.2%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

The stock is down 3.1% since the results and currently trades at $28.

Read our full analysis of Karat Packaging's results here.

GMS (NYSE:GMS)

Founded in 1971, GMS (NYSE:GMS) distributes specialty building materials including wallboard, ceilings, and insulation products, to the construction industry.

GMS reported revenues of $1.41 billion, up 8.4% year on year, in line with analysts' expectations. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

The stock is down 11.8% since the results and currently trades at $79.26.

Read our full, actionable report on GMS here, it's free.

Alta (NYSE:ALTG)

Founded in 1984, Alta Equipment Group (NYSE:ALTG) is a provider of industrial and construction equipment and services across the Midwest and Northeast United States.

Alta reported revenues of $441.6 million, up 5% year on year, surpassing analysts' expectations by 5%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

The stock is down 31.5% since the results and currently trades at $7.94.

Read our full, actionable report on Alta here, it's free.

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