We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
In the last reported quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate by 43.6% and 22.9%, respectively. On a year-over-year basis, earnings and revenues increased 16% and 7%, respectively.
UFP Industries' earnings topped the consensus mark in all the last nine quarters.
Trend in Estimate Revision
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has moved up to $2.51 per share from $2.50 over the past 60 days. The estimated figure indicates a 30.1% increase from the year-ago quarter’s earnings of $1.93 per share. The consensus mark for revenues is pegged at $2.28 billion, suggesting 8.8% year-over-year growth.
UFP Industries’ revenues are expected to have increased in the third quarter owing to higher demand for products across its segments.
The company expects normalized demand in the third quarter in its largest segment, UFP Retail Solutions, which accounted for 39.6% of 2021 net sales. Balanced business model and operational improvements are expected to have helped it navigate new challenges like rising interest rates and historically high inflation.
The existing product portfolio, initiatives to improve production efficiency and growth opportunities across the markets served are likely to have somewhat offset these headwinds. Efforts to introduce new products are likely to have been a boon for the company.
Again, as highlighted on the second-quarter earnings call, the company expects pricing to remain healthy in the UFP Industrial segment as it passes through inflationary costs and benefits from the focus on value-added products.
In the UFP Construction segment, the company’s continued activity in commercial and infrastructure end markets is expected to have contributed to the quarterly performance. However, softening of the housing market is a risk. The diversified business and end markets are likely to have delivered good returns to shareholders.
Meanwhile, persistent inflationary pressure has been a concern. The companies in the industry have been experiencing significant material cost inflation along with escalating land, labor and material costs. Also, the adverse effects of tightening global and domestic supply chains may have been a concern.
Moreover, regular swings in the cost of lumber products and the housing market slowdown may have put pressure on the margins.
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, according to our model, have the right combination of elements to post an earnings beat on their respective quarters to be reported.
PulteGroup, Inc. (PHM - Free Report) has an Earnings ESP of +1.75% and a Zacks Rank #3.
PHM’s earnings topped the consensus mark thrice but missed the same on one occasion, with the average surprise being 5.6%. Earnings for the to-be-reported quarter are expected to increase 51.7% year over year.
Boise Cascade Company (BCC - Free Report) has an Earnings ESP of +3.29% and a Zacks Rank #1.
BCC’s earnings topped the consensus mark in all the last four quarters, with the average being 27.1%. Earnings for the to-be-reported quarter are expected to increase 92.6% year over year.
KBR, Inc. (KBR - Free Report) has an Earnings ESP of +1.60% and a Zacks Rank #3.
KBR’s earnings topped the consensus mark in all the last four quarters, with the average being 11.5%. Earnings for the to-be-reported quarter are expected to decline 1.6% year over year.
Image: Bigstock
UFP Industries (UFPI) to Report Q3 Earnings: What to Expect?
UFP Industries, Inc. (UFPI - Free Report) is set to report third-quarter 2022 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 43.6% and 22.9%, respectively. On a year-over-year basis, earnings and revenues increased 16% and 7%, respectively.
UFP Industries' earnings topped the consensus mark in all the last nine quarters.
Trend in Estimate Revision
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has moved up to $2.51 per share from $2.50 over the past 60 days. The estimated figure indicates a 30.1% increase from the year-ago quarter’s earnings of $1.93 per share. The consensus mark for revenues is pegged at $2.28 billion, suggesting 8.8% 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’ revenues are expected to have increased in the third quarter owing to higher demand for products across its segments.
The company expects normalized demand in the third quarter in its largest segment, UFP Retail Solutions, which accounted for 39.6% of 2021 net sales. Balanced business model and operational improvements are expected to have helped it navigate new challenges like rising interest rates and historically high inflation.
The existing product portfolio, initiatives to improve production efficiency and growth opportunities across the markets served are likely to have somewhat offset these headwinds. Efforts to introduce new products are likely to have been a boon for the company.
Again, as highlighted on the second-quarter earnings call, the company expects pricing to remain healthy in the UFP Industrial segment as it passes through inflationary costs and benefits from the focus on value-added products.
In the UFP Construction segment, the company’s continued activity in commercial and infrastructure end markets is expected to have contributed to the quarterly performance. However, softening of the housing market is a risk. The diversified business and end markets are likely to have delivered good returns to shareholders.
Meanwhile, persistent inflationary pressure has been a concern. The companies in the industry have been experiencing significant material cost inflation along with escalating land, labor and material costs. Also, the adverse effects of tightening global and domestic supply chains may have been a concern.
Moreover, regular swings in the cost of lumber products and the housing market slowdown may have put pressure on the margins.
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, UFP Industries has an Earnings ESP of 0.00% and a Zacks Rank #1. 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, according to our model, have the right combination of elements to post an earnings beat on their respective quarters to be reported.
PulteGroup, Inc. (PHM - Free Report) has an Earnings ESP of +1.75% and a Zacks Rank #3.
PHM’s earnings topped the consensus mark thrice but missed the same on one occasion, with the average surprise being 5.6%. Earnings for the to-be-reported quarter are expected to increase 51.7% year over year.
Boise Cascade Company (BCC - Free Report) has an Earnings ESP of +3.29% and a Zacks Rank #1.
BCC’s earnings topped the consensus mark in all the last four quarters, with the average being 27.1%. Earnings for the to-be-reported quarter are expected to increase 92.6% year over year.
KBR, Inc. (KBR - Free Report) has an Earnings ESP of +1.60% and a Zacks Rank #3.
KBR’s earnings topped the consensus mark in all the last four quarters, with the average being 11.5%. Earnings for the to-be-reported quarter are expected to decline 1.6% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.