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UFP Industries (UFPI) Q1 Earnings Beat, Revenues Miss, Stock Down
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UFP Industries, Inc. (UFPI - Free Report) reported mixed results for first-quarter 2023, with earnings beating the Zacks Consensus Estimate but net sales missing the same. Both metrics declined on a year-over-year basis. Lower pricing and organic unit sales hurt the company’s quarterly results.
Shares of this wood manufacturer and supplier moved down 3.3% in the after-hours trading session on May 2, post the earnings release.
Nonetheless, the company has been investing in product and service enhancements and innovations to create value for customers. The company’s outlook remains positive, albeit at a slower pace compared to 2021 and 2022.
UFP Industries, Inc. Price, Consensus and EPS Surprise
UFP Industries’ quarterly earnings came in at $1.98 per share, surpassing the consensus mark of $1.65 by 20% but declined 34% from the year-ago adjusted level of $3.00.
Net sales of $1.82 billion missed the consensus mark of $1.83 billion by 0.5% and declined 27% year over year. The decline was due to an 8% decline in organic unit sales and a 20% decline in prices, partly offset by a 1% increase from acquisitions.
New product sales were $167 million, down 10% year over year, mainly due to lower lumber prices.
Segment Discussion
UFP Retail Solutions: The segment reported sales of $749.6 million for the quarter, which declined 25% year over year. A 23% decline in selling prices and a 2% decline in organic unit sales impacted the result. Gross profit declined 30% from a year ago to $94.4 million.
UFP Packaging: The Packaging segment’s sales totaled $486.6 million, reflecting growth of 20% from the year-ago period. For the quarter, selling prices increased 18% year over year while organic unit sales were down by 4%, partly offset by a 2% increase in sales from acquisitions. The segment focuses more on higher-margin products and is selective in taking on new business. Gross margin declined 19% to $120.9 million from a year ago.
UFP Construction: Sales in the segment were $515.6 million, down 34% year over year. This decline in segment sales was mainly due to a 16% decline in organic unit sales and an 18% decline in selling prices. Gross margin decreased 25% from a year ago to $121.7 million.
Operating Highlights
Selling, general and administrative expenses — accounting for 10.7% of net sales — increased 190 basis points (bps) year over year. Adjusted EBITDA of $202 million declined 31% year over year. Adjusted EBITDA margin contracted 60 bps year over year to 11.1%.
Balance Sheet & Cash Flow
The company ended first-quarter 2023 with $1.7 billion in liquidity. Cash and cash equivalents were $423.3 million at the first-quarter end compared with $559.4 million at 2022-end. At Mar 31, 2023-end, net cash used in operating activities was $37.1 million compared with $245 million in the corresponding year-ago period.
During the quarter, UFPI purchased approximately 451,000 shares at an average price of $78.27 under the share repurchase plan. It has an additional 1.5 million shares for repurchase through Feb 3, 2024. The company will also pay a quarterly dividend of 25 cents per share, payable on Jun 15, 2023, to shareholders of record on Jun 1, 2023.
Masco Corporation (MAS - Free Report) reported better-than-expected results for first-quarter 2023. The top and bottom lines surpassed the Zacks Consensus Estimate. The company has been benefiting from strong pricing actions and operational improvements.
On the other hand, adjusted earnings and net sales declined on a year-over-year basis due to supply-chain challenges and inflation headwinds.
Armstrong World Industries, Inc. (AWI - Free Report) reported impressive results for first-quarter 2023, wherein earnings and net sales surpassed the Zacks Consensus Estimate and grew on a year-over-year basis.
The upside in AWI’s first-quarter results was driven by double-digit sales and adjusted EBITDA growth in the Mineral Fiber segment.
Owens Corning (OC - Free Report) reported mixed results for first-quarter 2023. Although quarterly earnings and net sales surpassed the Zacks Consensus Estimate, both metrics declined on a year-over-year basis.
OC’s quarterly adjusted EBIT and adjusted EBITDA decreased 13% and 10%, respectively, on a year-over-year basis. Adjusted EBIT and adjusted EBITDA margin contracted 300 bps and 100 bps, respectively, from the year-ago figure.
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UFP Industries (UFPI) Q1 Earnings Beat, Revenues Miss, Stock Down
UFP Industries, Inc. (UFPI - Free Report) reported mixed results for first-quarter 2023, with earnings beating the Zacks Consensus Estimate but net sales missing the same. Both metrics declined on a year-over-year basis. Lower pricing and organic unit sales hurt the company’s quarterly results.
Shares of this wood manufacturer and supplier moved down 3.3% in the after-hours trading session on May 2, post the earnings release.
Nonetheless, the company has been investing in product and service enhancements and innovations to create value for customers. The company’s outlook remains positive, albeit at a slower pace compared to 2021 and 2022.
UFP Industries, Inc. Price, Consensus and EPS Surprise
UFP Industries, Inc. price-consensus-eps-surprise-chart | UFP Industries, Inc. Quote
Earnings & Revenue Discussion
UFP Industries’ quarterly earnings came in at $1.98 per share, surpassing the consensus mark of $1.65 by 20% but declined 34% from the year-ago adjusted level of $3.00.
Net sales of $1.82 billion missed the consensus mark of $1.83 billion by 0.5% and declined 27% year over year. The decline was due to an 8% decline in organic unit sales and a 20% decline in prices, partly offset by a 1% increase from acquisitions.
New product sales were $167 million, down 10% year over year, mainly due to lower lumber prices.
Segment Discussion
UFP Retail Solutions: The segment reported sales of $749.6 million for the quarter, which declined 25% year over year. A 23% decline in selling prices and a 2% decline in organic unit sales impacted the result. Gross profit declined 30% from a year ago to $94.4 million.
UFP Packaging: The Packaging segment’s sales totaled $486.6 million, reflecting growth of 20% from the year-ago period. For the quarter, selling prices increased 18% year over year while organic unit sales were down by 4%, partly offset by a 2% increase in sales from acquisitions. The segment focuses more on higher-margin products and is selective in taking on new business. Gross margin declined 19% to $120.9 million from a year ago.
UFP Construction: Sales in the segment were $515.6 million, down 34% year over year. This decline in segment sales was mainly due to a 16% decline in organic unit sales and an 18% decline in selling prices. Gross margin decreased 25% from a year ago to $121.7 million.
Operating Highlights
Selling, general and administrative expenses — accounting for 10.7% of net sales — increased 190 basis points (bps) year over year. Adjusted EBITDA of $202 million declined 31% year over year. Adjusted EBITDA margin contracted 60 bps year over year to 11.1%.
Balance Sheet & Cash Flow
The company ended first-quarter 2023 with $1.7 billion in liquidity. Cash and cash equivalents were $423.3 million at the first-quarter end compared with $559.4 million at 2022-end. At Mar 31, 2023-end, net cash used in operating activities was $37.1 million compared with $245 million in the corresponding year-ago period.
During the quarter, UFPI purchased approximately 451,000 shares at an average price of $78.27 under the share repurchase plan. It has an additional 1.5 million shares for repurchase through Feb 3, 2024. The company will also pay a quarterly dividend of 25 cents per share, payable on Jun 15, 2023, to shareholders of record on Jun 1, 2023.
Zacks Rank & Key Picks
UFPI currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Masco Corporation (MAS - Free Report) reported better-than-expected results for first-quarter 2023. The top and bottom lines surpassed the Zacks Consensus Estimate. The company has been benefiting from strong pricing actions and operational improvements.
On the other hand, adjusted earnings and net sales declined on a year-over-year basis due to supply-chain challenges and inflation headwinds.
Armstrong World Industries, Inc. (AWI - Free Report) reported impressive results for first-quarter 2023, wherein earnings and net sales surpassed the Zacks Consensus Estimate and grew on a year-over-year basis.
The upside in AWI’s first-quarter results was driven by double-digit sales and adjusted EBITDA growth in the Mineral Fiber segment.
Owens Corning (OC - Free Report) reported mixed results for first-quarter 2023. Although quarterly earnings and net sales surpassed the Zacks Consensus Estimate, both metrics declined on a year-over-year basis.
OC’s quarterly adjusted EBIT and adjusted EBITDA decreased 13% and 10%, respectively, on a year-over-year basis. Adjusted EBIT and adjusted EBITDA margin contracted 300 bps and 100 bps, respectively, from the year-ago figure.