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Factors Setting the Tone for UFP Industries' (UFPI) Q3 Earnings
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UFP Industries, Inc. (UFPI - Free Report) is set to report third-quarter 2021 results on Oct 20, after the closing bell.
In the last reported quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate by 41.9% and 13.9%, respectively. On a year-over-year basis, earnings and revenues increased 141.7% and 117.4%, respectively.
UFP Industries' earnings topped the consensus mark in all the last four quarters, with the average being 52.4%.
Trend in Estimate Revision
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has been unchanged at $1.55 per share over the past 60 days. The estimated figure indicates 24% growth from the year-ago earnings of $1.25 per share. The consensus mark for revenues is $1.81 billion, suggesting 22% 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 across the markets served. Also, efforts to introduce new products are likely to have been a boon for the company. Further, a solid U.S. residential market and robust demand for repair and remodeling (R&R) activities are expected to have benefited its third-quarter performance.
Also, acquisitions have been the primary contributor to unit sales growth. In September 2021, UFP Distribution, LLC — which is part of UFP Industries — acquired the operating assets of Haleyville, AL-based Shelter Products, Inc. for $6.5 million. UFP Distribution — a wholly-owned subsidiary of UFP Construction, LLC — provides distribution and logistics support to factory-built manufacturers through nine warehouses across the United States.
The company’sIndustrial and Retail segments are expected to have gained from the integration of recent acquisitions of PalletOne and its subsidiary, Sunbelt Forest Products, as well as Spartanburg Forest Products.
Yet, widespread transportation and supply chain issues might have been pressing concerns.
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.
Comfort Systems USA, Inc. (FIX - Free Report) has an Earnings ESP of +6.34% and carries a Zacks Rank #3.
Jacobs Engineering Group Inc. (J - Free Report) has an Earnings ESP of +6.49% and holds a Zacks Rank #2.
KBR, Inc. (KBR - Free Report) has an Earnings ESP of +2.66% and a Zacks Rank #2.
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Factors Setting the Tone for UFP Industries' (UFPI) Q3 Earnings
UFP Industries, Inc. (UFPI - Free Report) is set to report third-quarter 2021 results on Oct 20, after the closing bell.
In the last reported quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate by 41.9% and 13.9%, respectively. On a year-over-year basis, earnings and revenues increased 141.7% and 117.4%, respectively.
UFP Industries' earnings topped the consensus mark in all the last four quarters, with the average being 52.4%.
Trend in Estimate Revision
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has been unchanged at $1.55 per share over the past 60 days. The estimated figure indicates 24% growth from the year-ago earnings of $1.25 per share. The consensus mark for revenues is $1.81 billion, suggesting 22% 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 across the markets served. Also, efforts to introduce new products are likely to have been a boon for the company. Further, a solid U.S. residential market and robust demand for repair and remodeling (R&R) activities are expected to have benefited its third-quarter performance.
Also, acquisitions have been the primary contributor to unit sales growth. In September 2021, UFP Distribution, LLC — which is part of UFP Industries — acquired the operating assets of Haleyville, AL-based Shelter Products, Inc. for $6.5 million. UFP Distribution — a wholly-owned subsidiary of UFP Construction, LLC — provides distribution and logistics support to factory-built manufacturers through nine warehouses across the United States.
The company’sIndustrial and Retail segments are expected to have gained from the integration of recent acquisitions of PalletOne and its subsidiary, Sunbelt Forest Products, as well as Spartanburg Forest Products.
Yet, widespread transportation and supply chain issues might have been pressing concerns.
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 #3 and an Earnings ESP of 0.00%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With Favorable Combination
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.
Comfort Systems USA, Inc. (FIX - Free Report) has an Earnings ESP of +6.34% and carries a Zacks Rank #3.
Jacobs Engineering Group Inc. (J - Free Report) has an Earnings ESP of +6.49% and holds a Zacks Rank #2.
KBR, Inc. (KBR - Free Report) has an Earnings ESP of +2.66% and a Zacks Rank #2.