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Jul 02, 2022
BlueLinx Q2 2022 Earnings Report
Announced results for the second quarter 2022.
Key Takeaways
BlueLinx delivered the third highest quarter ever in diluted Earnings Per Share, adjusted EBITDA, and Operating Cash. Net sales were $1.2 billion, a decrease of 5%. Specialty product sales increased 17% to $788 million.
Net sales of $1.2 billion, a decrease of 5% due primarily to wood-based commodity price declines, while Specialty product sales increased 17% to $788 million.
Gross profit of $201 million, a decrease of 20%, while Specialty product gross profit increased 9% to $180 million.
Net income was $71 million and diluted EPS was $7.48.
Generated $101 million of Operating Cash and $97 million of Free Cash Flow.
Revenue by Segment
Forward Guidance
The Company anticipates a slowdown in the U.S. housing industry over the coming quarters. However, the undersupply of homes, demographic shifts, repair and remodel activity and high levels of home equity, among other factors, will continue to support the broad residential housing market.
Positive Outlook
- Specialty product sales volumes were consistent with the second quarter
- Gross margins were in the range of 22% to 23% for specialty products.
- Structural product sales volumes were above second quarter levels
- Gross margins between 18% and 19% for structural products
- Reversal of the full amount of the lower of cost or market adjustment recorded in Q2 2022.
Challenges Ahead
- Broad-based inflation
- Rapid rise in mortgage rates
- Pressure on home affordability
- New home starts are under pressure
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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