Beacon Roofing Supply, Inc. BECN reported fourth-quarter fiscal 2018 results, wherein earnings and revenues missed the Zacks Consensus Estimate.Adjusted earnings of $1.07 per share missed the consensus estimate of $1.36 by 21.3%. However, the reported figure increased 0.9% from $1.06 a year ago.The year-over-year improvement was primarily driven by solid segmental performances, favorable contributions from acquired operations along with positive price-cost performance. However, significant volume challenges across the historical hail markets and unfavorable weather partly offset the positives.On a reported basis, the company recorded earnings of 54 cents per share compared with 73 cents a year ago.Beacon Roofing Supply, Inc. Price, Consensus and EPS Surprise Beacon Roofing Supply, Inc. Price, Consensus and EPS Surprise | Beacon Roofing Supply, Inc. QuoteOperational UpdateBeacon Roofing, one of the largest distributors of residential as well as commercial roofing materials and complementary building products, posted a record sale of $1.94 billion, up 50.1% year over year. However, the reported figure missed the consensus mark of $2.01 billion by 3.9%.The record sales were positively impacted by strategic acquisitions of Allied, Tri-State and Atlas. That said, organic sales declined 5.6% year over year due to significant volume challenges across the historical hail markets.The downside was partially offset by mid-to-high single-digit price increases along with strong contribution in Florida as a result of hurricane Irma.Sales in the Residential roofing product segment grew 17.8% and that of Non-residential roofing product increased 33.8% from a year ago. Complementary product’s sales surged a whopping 170.6% year over year. However, existing markets sales (excluding acquisitions) decreased 5.6% as a result of bad weather conditions.Cost of goods sold (accounting for 74.6% of net sales) of $1,444.5 million climbed 49.3% year over year. Gross profit came in at $491.3 million, which was significantly up 52.3% from a year ago. Also, gross margin expanded 40 basis points (bps) to 25.4%. However, operating expenses grew 62.8% year over year during the quarter.Although Beacon Roofing reported operating income of $108.1 million, up from the prior-year figure of $87.3 million, operating margin contracted 130 bps to 5.5% in the quarter. Additionally, adjusted EBITDA margin declined 110 bps in the reported quarter.Cash PositionAs of Sep 30, 2018, Beacon Roofing reported cash and cash equivalents of $129.9 million, down from $138.3 million reported on Sep 30, 2017. The company generated $539.4 million cash from operating activities in fiscal 2018 compared with $315.2 million in fiscal 2017.Fiscal 2018 ReviewBeacon Roofing reported adjusted earnings of $2.70 per share, which inched up 0.7% year over year. Also, revenues of $6.42 billion in fiscal 2018 were up 46.6% year over year. Notably, both the top and bottom lines marked annual record performances for the company. However, both the reported figures lagged the consensus mark by 1.2% and 10.3%, respectively.On a reported basis, the company recorded fiscal 2018 earnings of $1.05 per share compared with $1.64 a year ago. However, adjusted EBITDA margin in fiscal 2018 contracted 80 bps from a year ago.2019 GuidanceFor fiscal 2019, the company projects total sales in the range of $7-$7.35 billion. While Allied is expected to contribute approximately $600 million during the fiscal first quarter of 2019, Tri-State and Atlas are likely to add nearly $30 million during fiscal 2019. Organically, sales are anticipated to grow in the mid-single-digit range.Adjusted EBITDA is expected in the range of $540-$610 million, and adjusted earnings per share are likely to be between $2.90 and $3.35.Share Price PerformanceShares of Beacon Roofing have declined 56.5% compared with its industry’s fall of 6.5% year to date. Earnings estimates for fiscal 2019 have also trended downward by 0.3% over the past seven days.Zacks Rank and Stocks to ConsiderBeacon Roofing currently carries a Zacks Rank #4 (Sell).Some better-ranked stocks in the Zacks Retail-Wholesale sector include Tecnoglass Inc. TGLS, GMS Inc. GMS, and Darden Restaurants, Inc. DRI, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Tecnoglass, GMS and Darden’s EPS growth rate for the current year is expected to be 134.4%, 64.2% and 16.8%, respectively.Will You Make a Fortune on the Shift to Electric Cars?Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.It's not the one you think.See This Ticker Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GMS Inc. (GMS): Free Stock Analysis Report Beacon Roofing Supply, Inc. (BECN): Free Stock Analysis Report Tecnoglass Inc. (TGLS): Free Stock Analysis Report Darden Restaurants, Inc. (DRI): Free Stock Analysis Report To read this article on Zacks.com click here.