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Why Boise Cascade's (BCC) Q2 Earnings Are Likely to Improve

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Boise Cascade Company (BCC - Free Report) is slated to report second-quarter 2021 results on Aug 3.

In the last reported quarter, the company’s earnings topped the Zacks Consensus Estimate by 50.4%. The same rose significantly from the year-ago reported figure of 63 cents per share.

The bottom line surpassed the consensus mark in each of the trailing six quarters.

Trends in Estimates

The Zacks Consensus Estimate for Boise Cascade’s second-quarter earnings is pegged at $4.87 per share, implying an improvement of 472.9% from the year-ago quarter’s reported figure. The consensus estimate has been revised 1.2% upward from $4.81 over the past 30 days.

Factors at Play

Boise Cascade’s earnings are expected to have increased in the second quarter on the back of robust demand in the housing, and repair and remodeling market. Higher proportion in the single-family homes and accelerated demand for new residential construction across the United States might have aided the company’s performance.

Prices for commodity lumber and panel products are rising, which might have supported the bottom-line performance. Plus, random lengths composite panel index’s pricing continues to increase owing to mild winter weather, better-than-expected demand and persistent industry-operating challenges. The company is also witnessing strong Plywood demand and pricing.

However, supply-chain disruptions and tight logistics availability are expected to weigh on the second-quarter results.

What the Zacks Model Says

Our proven model does not conclusively predict an earnings beat for Boise Cascade — which shares space with Louisiana-Pacific Corporation (LPX - Free Report) in the Zacks Building Products - Wood industry — 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. That’s not the case here as you will see below. You can uncover the best stocks to buy or sell before they’re reported with our  Earnings ESP Filter.

Boise Cascade has an Earnings ESP of -7.60% and a Zacks Rank #5 (Strong Sell), currently.

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 beat on earnings in their respective quarters to be reported.

Primoris Services Corporation (PRIM - Free Report) has an Earnings ESP of +0.96% and a Zacks Rank #3, currently.

Quanta Services, Inc. (PWR - Free Report) has an Earnings ESP of +10.32% and a Zacks Rank #2 at present.