Benchmark has adjusted its price target for BlueLinx (BXC, Financial), reducing it from $120 to $110, yet it continues to hold a Buy rating on the company's shares. BlueLinx's first-quarter performance was described as solid. However, ongoing challenges such as severe weather conditions, competitive pricing, and a subdued housing market have impacted the industry. These factors have led to similar pressures on activity and pricing margins in the early part of the second quarter. Consequently, BlueLinx's earnings per share forecasts for fiscal years 2025 and 2026 have been revised downwards by 25 cents each, now expected to be $3.75 and $5.00, respectively, according to the analyst.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for BlueLinx Holdings Inc (BXC, Financial) is $97.50 with a high estimate of $135.00 and a low estimate of $80.00. The average target implies an upside of 52.92% from the current price of $63.76. More detailed estimate data can be found on the BlueLinx Holdings Inc (BXC) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, BlueLinx Holdings Inc's (BXC, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for BlueLinx Holdings Inc (BXC, Financial) in one year is $79.77, suggesting a upside of 25.11% from the current price of $63.76. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the BlueLinx Holdings Inc (BXC) Summary page.
BXC Key Business Developments
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- BlueLinx Holdings Inc (BXC, Financial) achieved gross margins of over 18% for specialty products and just over 9% for structural products despite price deflation and lower volumes.
- The company is executing on its market share gain strategies, particularly in engineered wood products, siding, millwork, industrial, and outdoor living products.
- Digital transformation efforts are on track, with phase one expected to be completed by Q3 2025, aiming to modernize the business and differentiate in the market.
- The Greenfield in Portland, Oregon, is performing better than expected, expanding its product offering and leveraging key supplier relationships.
- BlueLinx Holdings Inc (BXC) maintains a strong financial position with significant liquidity, allowing for strategic investments and share repurchases.
Negative Points
- Specialty product net sales declined nearly 5% year over year due to continued price deflation and volume pressure, particularly in siding and industrial products.
- The West region, especially Texas, faced significant headwinds due to challenges with large track builders.
- Tariffs are expected to put pressure on gross margins, and it may be difficult to maintain recent margins in certain product categories.
- The housing market remains challenging, with low existing home sales and declining consumer sentiment impacting the building materials sector.
- Inventory levels are elevated due to a soft start to the year, influenced by weather conditions and market softness.
