What factors influenced BECN's earnings in 2024?

Beacon Roofing Supply Inc.'s (BECN) 2024 earnings were influenced by several key factors:

1. **Revenue Growth**: BECN experienced notable revenue growth, with a reported increase of 7.3% year-over-year to $2.77 billion in the third quarter of 2024. This growth was primarily driven by acquisitions and digital sales platforms.
2. **Acquisitions and Branch Expansions**: The company's strategic expansions, including the acquisition of seven companies since the end of the second quarter of 2024, added 83 branches and generated approximately $1 billion in annual revenue. The opening of 62 new branches since the beginning of 2022 also contributed to the growth.
3. **Digital Sales Growth**: BECN's digital sales grew by approximately 28% year-over-year, with the highest quarterly adoption ever exceeding 28%. This shift to digital sales platforms is enhancing customer loyalty and increasing basket sizes, which is positively impacting revenues.
4. **Gross Margin and Profit Margin**: Despite the revenue growth, the gross margin for the first quarter was 24.7%, approximately 80 basis points below the same period last year, impacted by recent greenfield additions and M&A activities. The adjusted operating expenses increased due to costs associated with acquired and greenfield branches, as well as inflationary pressures on wages and benefits.
5. **Earnings Variations**: BECN's earnings per share (EPS) missed analyst estimates in both the second and fourth quarters of 2024, with a reported EPS of $2.32 for Q2 and $2.80 for Q4, respectively. This discrepancy was due to higher expenses and lower-than-expected revenue in certain quarters.
6. **Market Challenges**: The non-residential sales faced challenges with a mid-single digit decline in prices year-over-year, although they remained stable sequentially. These challenges, along with seasonal working capital needs, affected the company's cash flow and margins.

In summary, BECN's 2024 earnings were influenced by strategic growth initiatives, such as acquisitions and digital sales expansions, which drove revenue growth. However, challenges such as margin pressures, higher expenses, and market fluctuations in non-residential sales impacted profitability.