Universal Forest Products, Inc. (UFPI - Free Report) reported mixed results in third-quarter 2019, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same. This marked the third straight quarter of earnings beat and the second consecutive quarter of revenue miss.
Despite being hurt by rising labor costs and significant fluctuations in the lumber market, the company managed to generate strong earnings on the back of solid new and value-added products growth.
The company’s earnings of 84 cents per share topped the consensus estimate of 78 cents by 7.7%. Also, the reported figure increased 27.3% from 66 cents reported in the year-ago period.
Net sales of $1.16 billion marginally missed the consensus mark of $1.18 billion and declined 4.1% on a year-over-year basis from $1.21 billion.
Lower lumber prices and 11% reduction in selling prices adversely impacted gross sales.In a bid to expand value-added offerings and market presence in Midwest and Northwest, the company acquired Hartford, Wisconsin-based Pallet USA and Bonner, and Montana-based Northwest Painting, Inc. during the third quarter.
Universal Forest Products, Inc. Price, Consensus and EPS Surprise