Beacon Roofing Supply shares rise after strong 4Q

Shares of Beacon Roofing Supply Inc. rose today, a day after reporting unexpectedly strong fourth-quarter results. An analyst boosted his earnings estimates for Beacon.

The Peabody-based company said yesterday that net income more than doubled to 55 cents a share in its fiscal 2008 fourth-quarter which ended in September, well above the average Wall Street expectation.

RBC Capital Markets analyst Scot Ciccarelli today raised his fiscal 2009 earnings-per-share estimate to 93 cents from 88 cents. Analysts expect, on average, 87 cents per share, according to a Thomson Reuters poll.

Saying Beacon is continuing to execute in a difficult market, Ciccarelli said the company's "exposure to the re-roofing segment should provide a degree of insulation from the current macro downturn."

He said "re-roofing activity is estimated to be roughly twice the size of the 'new roofing' market, providing the company with a broad and stable end market."

Ciccarelli has an "Outperform" rating on the stock and a $17 price target.

Beacon shares rose 42 cents, or 3.9 percent, to $11.24 in afternoon trading. In the last 52 weeks, the stock has ranged from $6.70 to $18.70. (AP)