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UFP Industries (UFPI) Stock Up as Q4 Earnings Beat Estimates

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UFP Industries, Inc. (UFPI - Free Report) reported stellar results for fourth-quarter 2021. Both earnings and net sales beat the Zacks Consensus Estimate as well as improved impressively on a year-over-year basis. With this, the company’s earnings and sales surpassed the consensus mark in all the trailing four quarters. The uptrend was mainly driven by the diversity of markets and an improved pricing model.

Shares of this wood products provider gained 1.26% in the after-hours trading session on Feb 16.

Matthew J. Missad, CEO of UFP Industries, said, “Our new market-focused organizational structure is helping us to better identify growth opportunities, and we are more strategically investing our capital. These investments, coupled with the addition of new value-added products and very strong demand, have resulted in unprecedented growth.”

Earnings & Revenue Discussion

UFP Industries’ fourth-quarter adjusted earnings came in at $2.19 per share, which comfortably surpassed the consensus mark of $1.25 by 75.2% and increased 114.7% from the year-ago level of $1.02.

Net sales of $2,016.8 million outpaced the consensus mark of $1,925 million by 4.8% and improved 45% on a year-over-year basis. The growth is attributable to a 5% rise in organic unit sales, a 20% increase in unit sales from buyouts and a 20% boost in lumber price.

New product sales were $189.1 million, up 42% year over year driven by recent buyouts.

UFP Industries, Inc. Price, Consensus and EPS Surprise

UFP Industries, Inc. Price, Consensus and EPS Surprise

UFP Industries, Inc. price-consensus-eps-surprise-chart | UFP Industries, Inc. Quote

Segment Discussion

UFP Retail Solutions: The segment reported sales of $703.9 million for the quarter, which grew 39% year over year as unit sales edged up 34%. A 2% rise in organic unit sales and a 3% increase in selling price also led to the upside.

UFP Industrial: The Industrial segment’s sales totaled $514.9 million, reflecting growth of 67% from the year-ago period. For the quarter, unit sales rose 29% year over year and selling prices increased 42%.

UFP Construction: Sales in the segment were $677.3 million, up 33% year over year. This improvement in the segment sales is mainly attributable to an 18% increase in selling price, a 13% rise in organic unit growth and 2% growth from acquisitions.

Operating Highlights

Selling, general and administrative expenses — accounting for 8.8% of net sales — improved 260 bps year over year. Adjusted EBITDA of $223.3 million increased 89% year over year. Adjusted EBITDA margin also expanded 260 bps from the prior year to 11.1%.

Balance Sheet & Cash Flow

The company ended 2021 with approximately $805 million liquidity and $50 million of net debt. Cash and cash equivalents were $286.7 million at 2021-end compared with $436.5 million at 2020-end. For 2021, net cash provided by operating activities was $512.5 million compared with $336.5 million in the corresponding year-ago period. UFP Industries now expects capital expenditure within $175-225 million for 2022, indicating an increase from $151 million spent in 2021.

UFPI’s board approved an increase in the share repurchase program up to 2.6 million shares.


The company made four acquisitions during the fourth quarter that contributed 20% to the unit sales growth. These buyouts are of Shelter Products (distribution in the United States); Boxpack Packaging (Australia), a 70% stake in Ficus Pax (industrial packaging in India), and Advantage Label & Packaging (U.S.). Overall, UFPI acquired nine companies during full-year 2021, which contributed 24% to unit sales growth for 2021.

Zacks Rank

Currently, UFP Industries carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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