TopBuild

In its first quarterly report following the $17 billion acquisition of TopBuild, QXO reported revenue of $3.25 billion, topping the analyst consensus of $3.19 billion. Adjusted earnings per share were $0.08, exactly in line with estimates. The roughly 70% year-over-year revenue increase reflects contributions from recent acquisitions and offers initial positive signs for integration and growth strategy; the stock rose 2.7% in after-hours trading. » More on de.investing.com

Shares of QXO dropped about 23% in July following the July 1 closing of the $17 billion TopBuild deal, its largest acquisition to date. Investors appeared concerned about debt load, potential dilution and limited upside for margin expansion since TopBuild already has strong margins; most TopBuild shareholders opted for cash over QXO stock. Rising oil prices and higher Treasury yields in July also weighed on cyclical housing and building-supply names, pressuring QXO's stock. » More on finance.yahoo.com

QXO's stock hit a new 52-week low of $14.74 and is currently trading at $14.81, about 32.55% below last year's level. Its high beta of 2.2 indicates strong volatility. QXO has completed the acquisition of TopBuild, strengthening its market position in North American building materials segments and was largely approved by shareholders. Analysts are divided: KeyBanc set a $28 price target (Overweight), while Benchmark continues to recommend "Buy" with a $50 target. » More on de.investing.com

QXO has completed its acquisition of TopBuild; the combined market capitalization rises to USD 12.5 billion on revenue of USD 8.6 billion over the last twelve months. The merged company is now the leading distributor of insulation in North America, the second-largest in roofing materials and the market leader in building waterproofing. Alec Covington, former chairman of TopBuild, joins QXO’s board of directors, replacing Jared Kushner. QXO expects annual synergies of at least USD 300 million by 2030, anticipates profit gains, and analysts forecast earnings per share of USD 0.49 for the year; TopBuild shares have been delisted from the NYSE. » More on de.investing.com

TopBuild has entered into supplemental agreements to its senior notes that eliminate the change-of-control offer required by the merger agreement and remove most of the restrictive covenants as well as certain defeasance provisions. The changes apply to the 4.125% notes due 2032 and the 5.625% notes due 2034 and will only take effect if the conditions of the tender offers and consent solicitations are satisfied. The adjustments are linked to the announced takeover by QXO, under which shareholders may choose by June 29 between $505.00 in cash or 20.200 QXO shares per TopBuild share; the total deal value is $17.0 billion. » More on de.investing.com