Building materials manufacturer UFP Industries (NASDAQ:UFPI) will be announcing earnings results this Wednesday afternoon. Here’s what to look for.
UFP Industries missed analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $1.84 billion, down 3.5% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.
Is UFP Industries a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting UFP Industries’s revenue to decline 2.2% year on year to $1.61 billion, improving from the 9.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.37 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. UFP Industries has missed Wall Street’s revenue estimates six times over the last two years.
Looking at UFP Industries’s peers in the building products segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Valmont delivered year-on-year revenue growth of 2.5%, beating analysts’ expectations by 1.5%, and Apogee reported revenues up 4.6%, topping estimates by 2.1%. Valmont traded down 1.8% following the results while Apogee was also down 4.5%.
Read our full analysis of Valmont’s results here and Apogee’s results here.
There has been positive sentiment among investors in the building products segment, with share prices up 3.8% on average over the last month. UFP Industries’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $114.50 (compared to the current share price of $92.17).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.