Shares of Builders FirstSource (NYSE: BLDR) surged 7.14% in intraday trading on Thursday, despite the company trimming its 2025 revenue outlook. The stock's impressive rally was primarily driven by the company's better-than-expected second-quarter earnings results.

For the quarter ended June 30, Builders FirstSource reported adjusted earnings per share of $2.38, surpassing the analyst consensus estimate of $2.29. However, the company's quarterly sales of $4.234 billion, while representing a 5% year-over-year increase, fell short of the expected $4.283 billion. The gross profit margin decreased by 210 basis points to 30.7%, mainly due to normalization of Single- and Multi-Family margins and a below-normal start environment.

Despite lowering its fiscal year 2025 sales outlook to a range of $14.8 billion to $15.6 billion, down from the previous range of $16.05 billion to $17.05 billion and below the analyst estimate of $16.318 billion, investors appeared to focus on the company's strong earnings performance and future prospects. Builders FirstSource expects to deliver $45 million to $65 million in productivity savings in 2025, which may have contributed to the positive market sentiment. The company also projects its gross profit margin to be between 29.0% and 30.5%, with adjusted EBITDA ranging from $1.5 billion to $1.7 billion for the fiscal year.