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Universal Forest Buys UBEECO to Boost Packaging Business
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Forest products company Universal Forest Products, Inc. (UFPI - Free Report) recently announced that one of its subsidiaries has acquired The UBEECO Group Pty. Ltd. Financial terms of the transaction have been kept under wraps.
Post the release of third-quarter 2016 results on Oct 18, shares of Universal Forest Products yielded a return of 3%, outperforming the return of 0.3% by the Zacks categorized Building Products Wood industry.
As revealed, Universal Forest Products acquired all the outstanding shares of the Australian wood packaging and alternative material products manufacturer. The UBEECO Group was founded in 1970 in Erskine Park, a suburb of Sydney. Its product line primarily includes boxes, crates, pallets, skids, protection packaging, packaging accessories and loose lumber. In addition, the company provides related services to its client base. The firm generated revenue of roughly $21.2 million in 2016.
The acquisition of The UBEECO Group will boost Universal Forest Products’ existing industrial packaging businesses. Also, the addition of skilled workforce of The UBEECO Group will allow the company to penetrate smoothly in the Australian markets.
We believe Universal Forest Products’ constant endeavors to expand its industrial packaging business through inorganic means will prove beneficial, going forward. Earlier in 2015, the company acquired Australia-based Integra Packaging Proprietary, Ltd., a wood speciality packaging products manufacturer and provider of on-site packaging services.
With a market capitalization of approximately $2 billion, Universal Forest Products currently carries a Zacks Rank #3 (Hold). For 2016, the company expects an improvement in the top line, backed by addition of customers and products to its portfolio. Also, enhancement of operating margin remains the company’s primary area of focus. The Zacks Consensus Estimate for the stock is pegged at $4.94 for 2016 and $5.81 for 2017.
Norbord has an average positive earnings surprise of 99.98% for the last four quarters. Its earnings estimates for 2016 and 2017 have been revised upward over the last 60 days.
Rayonier reported better-than-expected results in the last four quarters, with a positive average earnings surprise of 83.78%. Also, bottom-line expectations for 2016 have improved over the past 60 days.
Trex Company’ earnings estimates for 2016 and 2017 have been revised upward over the last 60 days. Average earnings surprise for the last four quarters is a positive 13.13%.
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Universal Forest Buys UBEECO to Boost Packaging Business
Forest products company Universal Forest Products, Inc. (UFPI - Free Report) recently announced that one of its subsidiaries has acquired The UBEECO Group Pty. Ltd. Financial terms of the transaction have been kept under wraps.
Post the release of third-quarter 2016 results on Oct 18, shares of Universal Forest Products yielded a return of 3%, outperforming the return of 0.3% by the Zacks categorized Building Products Wood industry.
As revealed, Universal Forest Products acquired all the outstanding shares of the Australian wood packaging and alternative material products manufacturer. The UBEECO Group was founded in 1970 in Erskine Park, a suburb of Sydney. Its product line primarily includes boxes, crates, pallets, skids, protection packaging, packaging accessories and loose lumber. In addition, the company provides related services to its client base. The firm generated revenue of roughly $21.2 million in 2016.
The acquisition of The UBEECO Group will boost Universal Forest Products’ existing industrial packaging businesses. Also, the addition of skilled workforce of The UBEECO Group will allow the company to penetrate smoothly in the Australian markets.
We believe Universal Forest Products’ constant endeavors to expand its industrial packaging business through inorganic means will prove beneficial, going forward. Earlier in 2015, the company acquired Australia-based Integra Packaging Proprietary, Ltd., a wood speciality packaging products manufacturer and provider of on-site packaging services.
With a market capitalization of approximately $2 billion, Universal Forest Products currently carries a Zacks Rank #3 (Hold). For 2016, the company expects an improvement in the top line, backed by addition of customers and products to its portfolio. Also, enhancement of operating margin remains the company’s primary area of focus. The Zacks Consensus Estimate for the stock is pegged at $4.94 for 2016 and $5.81 for 2017.
UNIVL FST PRODS Price and Consensus
UNIVL FST PRODS Price and Consensus | UNIVL FST PRODS Quote
Some better-ranked stocks in the industry include Norbord, Inc. , Rayonier Inc. (RYN - Free Report) and Trex Company, Inc. (TREX - Free Report) . While Norbord and Rayonier sport a Zacks Rank #1 (Strong Buy), Trex Company carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Norbord has an average positive earnings surprise of 99.98% for the last four quarters. Its earnings estimates for 2016 and 2017 have been revised upward over the last 60 days.
Rayonier reported better-than-expected results in the last four quarters, with a positive average earnings surprise of 83.78%. Also, bottom-line expectations for 2016 have improved over the past 60 days.
Trex Company’ earnings estimates for 2016 and 2017 have been revised upward over the last 60 days. Average earnings surprise for the last four quarters is a positive 13.13%.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>