Overview

• Bluelinx Q2 sales rise 2% yr/yr but miss analyst expectations

• Adjusted net income and EBITDA miss analyst estimates, per LSEG data

• Co announces new $50 mln share repurchase authorization

Outlook

• Bluelinx expects Q3 specialty product gross margin between 17% and 18%

• Bluelinx sees Q3 structural product gross margin between 8% and 9%

Result Drivers

• SPECIALTY PRODUCTS - Sales increased due to higher volumes across several categories, offset by price deflation

• STRUCTURAL PRODUCTS - Sales growth driven by increased lumber prices and volumes, despite panel price declines

• MARGIN PRESSURE - Specialty product margins declined due to competitive pricing environment, while structural margins benefited from lumber price increases

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy"

• Wall Street's median 12-month price target for Bluelinx Holdings Inc is $87.50, about 10.6% above its July 28 closing price of $78.25

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nBwby24zta

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)