Builders FirstSource’s BLDR shares gained 7.9% on Aug 1 after the company released its second-quarter 2022 results, wherein it reported 12.2% core organic sales growth.The company’s earnings and net sales surpassed the Zacks Consensus Estimate and increased significantly year over year. The results were driven by an increase in net sales and gross margin as well as contributions from acquisitions amid continuous raw material supply woes.Dave Flitman, President and CEO of Builders FirstSource, said, “I remain optimistic on the prospects for our industry over the long term and confident in our ability to outperform the market as we execute our strategy and further invest in margin accretive, value-added products and transformative digital solutions. We also remain fully committed to leveraging our strong cash flow profile to strategically deploy capital toward a combination of high return internal investments, accretive bolt-on M&A and returns to shareholders.”Peter Jackson, CFO of Builders FirstSource, added, “Looking ahead, we are exceptionally well-positioned to capture organic and inorganic value-enhancing growth opportunities and expand our market-leading positions. For 2022, we remain focused on delivering strong double-digit base business growth and significant free cash flow.”Builders FirstSource, Inc. Price, Consensus and EPS Surprise Builders FirstSource, Inc. price-consensus-eps-surprise-chart | Builders FirstSource, Inc. QuoteEarnings & Revenue DiscussionThe manufacturer and supplier of building materials reported adjusted earnings of $6.26 per share, which handily topped the consensus mark of $3.00. The reported figure also increased by a significant 126.8% from the year-ago quarter.For the quarter, net sales of $6.93 billion surpassed the consensus mark of $5.45 billion. The top line grew 24.2% on a year-over-year basis. Core organic sales grew 12.2% from the prior-year quarter. Commodity price inflation contributed 3.9% to net sales. Acquisitions added 8.1% to net sales growth. The upside was led by solid demand for its products amid supply woes.Notably, core organic sales in value-added products increased 32% compared with the prior-year period.Core organic customer growth in Single Family increased 15.8%, while R&R/Other and Multi Family remained almost flat year over year.Sales According to Product CategoryValue-Added Product Sales: For the reported quarter, sales of value-added products (comprising 42.2% of the quarterly net sales) were $2.92 billion, up 50.9% from the prior year.Specialized Product & Other: Gypsum, Roofing & Insulation products sales (comprising 16.9% of the quarterly net sales) increased 12.3% from the year-ago quarter to $1.17 billion.Lumber & Lumber Sheet Goods: For the quarter, segment sales (comprising 40.9% of the quarterly net sales) increased 9.1% year over year to $2.83 billion.Operating HighlightsGross profit for the quarter increased 52.4% year over year to $2.4 billion. Gross margin of 34.8% expanded 640 basis points (bps) year over year owing to higher sales in value-added product categories, disciplined pricing in a volatile, supply-constrained marketplace and effective and timely sourcing. As a percentage of net sales, total SG&A expenses improved 110 bps to 15.1%.Adjusted EBITDA increased 80.3% on a year-over-year basis to $1.5 billion, primarily driven by core organic growth, commodity inflation, and acquisitions. Adjusted EBITDA margin expanded 680 bps year over year to 21.8%.Other Financial DetailsAs of Jun 30, 2022, Builders FirstSource had cash and cash equivalents of $166.2 million compared with $42.6 million at 2021-end. Long-term debt — net of current portion — was $3.55 billion, up from $2.93 billion at 2021-end.The company had liquidity of $1 billion at June 2022 end, consisting of approximately $0.8 billion in net borrowing availability under the revolving credit facility and cash on hand.During the quarter, BLDR repurchased 16.9 million shares of its stock for $990.7 million.BuyoutsOn Apr 1, 2022, BLDR wrapped up the acquisition of both the Texas Panel Truss and East Panel Truss businesses for an aggregate of $150 million.Additionally, Builders FirstSource acquired Valley Truss Co., Inc. — a provider of building components to the single and multi-family markets in Boise, ID — for $30.5 million.On Jul 1, 2022, BLDR acquired a provider of building products in Flagstaff, AZ, HomCo Lumber and Hardware.GuidanceFor 2022, the company now expects free cash flow between $2.5-$3 billion versus $2-$2.4 billion expected earlier. Interest expense is expected in the range of $175 million to $185 million. BLDR projects an effective tax rate between 23% and 25%, total capital expenditures between $275 million and $325 million, depreciation and amortization expenses between $460 million and $480 million for 2022.Acquisitions will likely contribute to net sales growth between 6% and 7%.Zacks RankBLDR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.A Few Recent ReleasesFastenal Company FAST reported second-quarter 2022 results, wherein earnings came in line with the Zacks Consensus Estimate, but revenues missed the mark.That said, the top and bottom lines of FAST improved on a year-over-year basis, given the strong demand for manufacturing and construction equipment and supplies, along with higher pricing.Martin Marietta Materials, Inc. MLM reported impressive second-quarter 2022 results. Earnings and revenues surpassed the Zacks Consensus Estimate and increased on a year-over-year basis, backed by improved pricing across businesses and higher demand.Despite increased inflationary pressure from rising input costs and a challenging macroeconomic and geopolitical environment, solid execution of its strategic business plan and resilient aggregates-led business drove the result.EMCOR Group, Inc. EME reported solid results for second-quarter 2022. The top and bottom lines surpassed the Zacks Consensus Estimate and increased year over year.EME’s management approved a 15.4% hike in its regular quarterly dividend to 15 cents, payable on Oct 31 to stockholders of record as of Oct 18, 2022. Also, it authorized a new share repurchase program to repurchase up to an additional $500 million of its outstanding common stock. Zacks' Top Picks to Cash in on Electric Vehicles Big money has already been made in the Electric Vehicle (EV) industry. But, the EV revolution has not hit full throttle yet. There is a lot of money to be made as the next push for future technologies ramps up. Zacks’ Special Report reveals 5 picks investorsSee 5 EV Stocks With Extreme Upside Potential >>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 Fastenal Company (FAST): Free Stock Analysis Report EMCOR Group, Inc. (EME): Free Stock Analysis Report Builders FirstSource, Inc. (BLDR): Free Stock Analysis Report Martin Marietta Materials, Inc. (MLM): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research