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Factors Setting the Tone for UFP Industries' (UFPI) Q1 Earnings
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UFP Industries, Inc. (UFPI - Free Report) is set to report first-quarter 2021 results on Apr 21, after the closing bell.
In the last reported quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate by 25.9% and 16.4%, respectively. On a year-over-year basis, earnings and revenues increased 67.2% and 39.6%, respectively.
UFP Industries' earnings topped the consensus mark in three of the last four quarters, with the average surprise being 38.4%.
Trend in Estimate Revision
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has increased 36.4% to 90 cents from 66 cents per share over the past two months. The estimated figure indicates 38.5% growth from the year-ago earnings of 65 cents per share. The consensus mark for revenues is $1.33 billion, suggesting 29.3% year-over-year growth.
UFP Industries is expected to have benefited from the existing product portfolio, initiatives to improve production efficiency and solid growth opportunities in the industrial market. Also, efforts to introduce new products are likely to have been a boon for the company. Moreover, solid U.S. residential market and robust demand for repair and remodeling (R&R) activities are expected to have benefited its first-quarter performance.
The company has been increasing investments for developing, marketing and selling new products.
In the industrial market, acquisitions have been the primary contributor to unit sales growth. Importantly, unit sales to the construction market have been benefiting from higher contribution from commercial and residential construction customers.
However, widespread slowdown in economic activity owing to the coronavirus outbreak may have been a concern for UFP Industries. Also, the highly volatile lumber market might have been pressing concerns.
Overall, although significant fluctuations in the lumber market and coronavirus-induced slowdown are expected to negatively impact first-quarter results, the company is likely to have generated strong earnings on the back of solid new and value-added products growth.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for UFP Industries this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some companies in the Zacks Construction sector, which according to our model have the right combination of elements to post an earnings beat in their respective quarters to be reported.
Louisiana-Pacific Corporation (LPX - Free Report) has an Earnings ESP of +11.75% and sports a Zacks Rank #1.
PotlatchDeltic Corporation (PCH - Free Report) has an Earnings ESP of +1.56% and sports a Zacks Rank #1.
Martin Marietta Materials, Inc. (MLM - Free Report) has an Earnings ESP of +10.77% and a Zacks Rank #2.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Factors Setting the Tone for UFP Industries' (UFPI) Q1 Earnings
UFP Industries, Inc. (UFPI - Free Report) is set to report first-quarter 2021 results on Apr 21, after the closing bell.
In the last reported quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate by 25.9% and 16.4%, respectively. On a year-over-year basis, earnings and revenues increased 67.2% and 39.6%, respectively.
UFP Industries' earnings topped the consensus mark in three of the last four quarters, with the average surprise being 38.4%.
Trend in Estimate Revision
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has increased 36.4% to 90 cents from 66 cents per share over the past two months. The estimated figure indicates 38.5% growth from the year-ago earnings of 65 cents per share. The consensus mark for revenues is $1.33 billion, suggesting 29.3% year-over-year growth.
UFP Industries, Inc. Price and EPS Surprise
UFP Industries, Inc. price-eps-surprise | UFP Industries, Inc. Quote
Factors to Note
UFP Industries is expected to have benefited from the existing product portfolio, initiatives to improve production efficiency and solid growth opportunities in the industrial market. Also, efforts to introduce new products are likely to have been a boon for the company. Moreover, solid U.S. residential market and robust demand for repair and remodeling (R&R) activities are expected to have benefited its first-quarter performance.
The company has been increasing investments for developing, marketing and selling new products.
In the industrial market, acquisitions have been the primary contributor to unit sales growth. Importantly, unit sales to the construction market have been benefiting from higher contribution from commercial and residential construction customers.
However, widespread slowdown in economic activity owing to the coronavirus outbreak may have been a concern for UFP Industries. Also, the highly volatile lumber market might have been pressing concerns.
Overall, although significant fluctuations in the lumber market and coronavirus-induced slowdown are expected to negatively impact first-quarter results, the company is likely to have generated strong earnings on the back of solid new and value-added products growth.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for UFP Industries this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Currently, it has a Zacks Rank #1 and an Earnings ESP of -1.86%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Worth a Look
Here are some companies in the Zacks Construction sector, which according to our model have the right combination of elements to post an earnings beat in their respective quarters to be reported.
Louisiana-Pacific Corporation (LPX - Free Report) has an Earnings ESP of +11.75% and sports a Zacks Rank #1.
PotlatchDeltic Corporation (PCH - Free Report) has an Earnings ESP of +1.56% and sports a Zacks Rank #1.
Martin Marietta Materials, Inc. (MLM - Free Report) has an Earnings ESP of +10.77% and a Zacks Rank #2.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>