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UFP Industries (UFPI) Q3 Earnings & Net Sales Miss, Down Y/Y
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UFP Industries, Inc. (UFPI - Free Report) reported tepid results for third-quarter 2023, wherein earnings and revenues missed the Zacks Consensus Estimate and declined on a year-over-year basis. Lower pricing and organic unit sales hurt the company’s quarterly results.
Despite a tough year-over-year comparison, UFPI's emphasis on innovation, efficiencies and value-added solutions helped in margin expansion. The company remains focused on expanding its business through new products and acquisitions on the back of strong cash flow generation and a solid balance sheet position.
Earnings & Revenue Discussion
UFP Industries’ quarterly earnings came in at $2.10 per share, which missed the consensus mark of $2.13 by 1.4% and decreased 21.1% from the year-ago level of $2.66.
UFP Industries, Inc. Price, Consensus and EPS Surprise
Net sales of $1.83 billion also lagged the consensus mark of $2.28 billion by 10.2% and declined 21% year over year. The decline is mainly due to a 12% fall in prices and a 9% decrease in unit sales.
New product sales accounted for 9.7%, up from 7.8% reported a year ago.
Segment Discussion
UFP Retail Solutions: The segment reported net sales of $711.4 million for the quarter, which declined 16% year over year due to a 9% decline in selling prices and 7% lower organic unit sales.
Adjusted EBITDA margin rose 340 basis points (bps) from the prior year to 7.6%. The improvement is primarily backed by variable-priced products such as ProWood-treated lumber.
UFP Packaging: The Packaging segment’s net sales totaled $449.9 million, reflecting a decline of 23% from the year-ago period. For the quarter, selling prices decreased by 16% and organic unit sales were down by 9% year over year, partly offset by a 2% increase in sales from acquisitions.
On a year-over-year basis, value-added sales and new product sales, as a percent of total net sales, increased to 76% and 16.1% from 74% and 11.5%, respectively.
Adjusted EBITDA margin fell 350 bps from the prior year to 11.9% due to competitive price pressure and lower volume.
UFP Construction: Net sales in the segment were $584 million, down 25% year over year. This decline was mainly due to a 13% decline in organic unit sales and a 12% decline in selling prices.
Adjusted EBITDA margin contracted 170 bps from the prior year to 13.2%, mainly due to more normalized market pricing and a decrease in volume owing to the decline in housing starts and in the production of manufactured homes.
Operating Highlights
During the third quarter, selling, general and administrative expenses — accounting for 10.7% of net sales — increased 150 bps year over year.
Adjusted EBITDA of $208 million reduced by 24% year over year. Adjusted EBITDA margin also contracted 40 bps from the prior year to 11.4%.
Balance Sheet & Cash Flow
The company ended third-quarter 2023 with $2.2 billion in liquidity. Cash and cash equivalents were $957.2 million at the third-quarter end compared with $559.4 million at 2022-end. At Sep 30, 2023-end, net cash from operating activities was $711.8 million compared with $533 million in the corresponding year-ago period.
During the first nine months of 2023, UFPI repurchased 766,812 shares at an average price of $80.95 under the share repurchase plan. On Jul 26, its board of directors authorized up to $200 million for share repurchases through Jul 31, 2024. Of this authorization, $179 million was remaining at the third quarter’s end.
The company anticipates $175-200 million in capital expenditures in 2023.
Vulcan Materials Company (VMC - Free Report) reported stellar results for the third quarter of 2023, surpassing the Zacks Consensus Estimate for both earnings and revenues.
VMC’s adjusted EPS of $2.29 increased 28.7% from the year-ago level of $1.78. Total revenues of $2,185.8 million increased 4.7% year over year.
Otis Worldwide Corporation (OTIS - Free Report) reported impressive results in third-quarter 2023. Its earnings and net sales surpassed the Zacks Consensus Estimate and rose on a year-over-year basis. Its quarterly results reflected 12 consecutive quarters of organic sales growth and solid operating margin expansion, contributing to high-teens adjusted EPS growth.
OTIS reported quarterly EPS of 95 cents, increasing 18.8% from the year-ago quarter’s figure of 80 cents. Net sales of $3.52 billion rose 5.4% on a year-over-year basis.
United Rentals, Inc.’s (URI - Free Report) third-quarter 2023 earnings and revenues surpassed the Zacks Consensus Estimate. On a year-over-year basis, earnings and revenues increased courtesy of sustained growth across the business, profitability and returns, underpinned by broad-based activity.
URI’s adjusted EPS of $11.73 increased 26.5% from the prior-year figure of $9.27 per share. Total revenues of $3.77 billion grew 23.4% year over year.
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UFP Industries (UFPI) Q3 Earnings & Net Sales Miss, Down Y/Y
UFP Industries, Inc. (UFPI - Free Report) reported tepid results for third-quarter 2023, wherein earnings and revenues missed the Zacks Consensus Estimate and declined on a year-over-year basis. Lower pricing and organic unit sales hurt the company’s quarterly results.
Despite a tough year-over-year comparison, UFPI's emphasis on innovation, efficiencies and value-added solutions helped in margin expansion. The company remains focused on expanding its business through new products and acquisitions on the back of strong cash flow generation and a solid balance sheet position.
Earnings & Revenue Discussion
UFP Industries’ quarterly earnings came in at $2.10 per share, which missed the consensus mark of $2.13 by 1.4% and decreased 21.1% from the year-ago level of $2.66.
UFP Industries, Inc. Price, Consensus and EPS Surprise
UFP Industries, Inc. price-consensus-eps-surprise-chart | UFP Industries, Inc. Quote
Net sales of $1.83 billion also lagged the consensus mark of $2.28 billion by 10.2% and declined 21% year over year. The decline is mainly due to a 12% fall in prices and a 9% decrease in unit sales.
New product sales accounted for 9.7%, up from 7.8% reported a year ago.
Segment Discussion
UFP Retail Solutions: The segment reported net sales of $711.4 million for the quarter, which declined 16% year over year due to a 9% decline in selling prices and 7% lower organic unit sales.
Adjusted EBITDA margin rose 340 basis points (bps) from the prior year to 7.6%. The improvement is primarily backed by variable-priced products such as ProWood-treated lumber.
UFP Packaging: The Packaging segment’s net sales totaled $449.9 million, reflecting a decline of 23% from the year-ago period. For the quarter, selling prices decreased by 16% and organic unit sales were down by 9% year over year, partly offset by a 2% increase in sales from acquisitions.
On a year-over-year basis, value-added sales and new product sales, as a percent of total net sales, increased to 76% and 16.1% from 74% and 11.5%, respectively.
Adjusted EBITDA margin fell 350 bps from the prior year to 11.9% due to competitive price pressure and lower volume.
UFP Construction: Net sales in the segment were $584 million, down 25% year over year. This decline was mainly due to a 13% decline in organic unit sales and a 12% decline in selling prices.
Adjusted EBITDA margin contracted 170 bps from the prior year to 13.2%, mainly due to more normalized market pricing and a decrease in volume owing to the decline in housing starts and in the production of manufactured homes.
Operating Highlights
During the third quarter, selling, general and administrative expenses — accounting for 10.7% of net sales — increased 150 bps year over year.
Adjusted EBITDA of $208 million reduced by 24% year over year. Adjusted EBITDA margin also contracted 40 bps from the prior year to 11.4%.
Balance Sheet & Cash Flow
The company ended third-quarter 2023 with $2.2 billion in liquidity. Cash and cash equivalents were $957.2 million at the third-quarter end compared with $559.4 million at 2022-end. At Sep 30, 2023-end, net cash from operating activities was $711.8 million compared with $533 million in the corresponding year-ago period.
During the first nine months of 2023, UFPI repurchased 766,812 shares at an average price of $80.95 under the share repurchase plan. On Jul 26, its board of directors authorized up to $200 million for share repurchases through Jul 31, 2024. Of this authorization, $179 million was remaining at the third quarter’s end.
The company anticipates $175-200 million in capital expenditures in 2023.
Zacks Rank & Recent Construction Releases
Currently, UFP Industries sports a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Vulcan Materials Company (VMC - Free Report) reported stellar results for the third quarter of 2023, surpassing the Zacks Consensus Estimate for both earnings and revenues.
VMC’s adjusted EPS of $2.29 increased 28.7% from the year-ago level of $1.78. Total revenues of $2,185.8 million increased 4.7% year over year.
Otis Worldwide Corporation (OTIS - Free Report) reported impressive results in third-quarter 2023. Its earnings and net sales surpassed the Zacks Consensus Estimate and rose on a year-over-year basis. Its quarterly results reflected 12 consecutive quarters of organic sales growth and solid operating margin expansion, contributing to high-teens adjusted EPS growth.
OTIS reported quarterly EPS of 95 cents, increasing 18.8% from the year-ago quarter’s figure of 80 cents. Net sales of $3.52 billion rose 5.4% on a year-over-year basis.
United Rentals, Inc.’s (URI - Free Report) third-quarter 2023 earnings and revenues surpassed the Zacks Consensus Estimate. On a year-over-year basis, earnings and revenues increased courtesy of sustained growth across the business, profitability and returns, underpinned by broad-based activity.
URI’s adjusted EPS of $11.73 increased 26.5% from the prior-year figure of $9.27 per share. Total revenues of $3.77 billion grew 23.4% year over year.