UFP Industries (UFPI) Earnings Preview: What to Expect on October 29th
Investors are eagerly awaiting UFP Industries’ (UFPI) upcoming quarterly earnings report, scheduled for Tuesday, October 29th. Analysts have set their expectations for an earnings per share (EPS) of $1.86. However, the market is hoping for more than just meeting estimates. Investors are keen to see if UFP Industries will deliver a positive surprise and provide upbeat guidance for the next quarter. It’s important to remember that guidance can significantly impact stock prices, making it a crucial aspect of the earnings release.
Earnings History Snapshot
In the last quarter, UFP Industries’ EPS missed by $0.00, leading to a 2.52% drop in the share price on the following day. Here’s a look at the company’s past performance and the resulting price change:
| Quarter | EPS Estimate | EPS Actual | Price Change (%) |
|—|—|—|—|
| Q2 2024 | 2.05 | 2.05 | -3.0% |
| Q1 2024 | 1.66 | 1.96 | 0.0% |
| Q4 2023 | 1.65 | 1.62 | 0.0% |
| Q3 2023 | 2.13 | 2.10 | 1.0% |
Stock Performance
As of October 25th, shares of UFP Industries were trading at $130.17. Over the last 52-week period, shares have risen by 38.33%. This positive long-term performance should offer some comfort to shareholders as they await the upcoming earnings announcement.
Analyst Opinions on UFP Industries
Staying informed about market sentiment and industry expectations is crucial for investors. Analysts have provided UFP Industries with 4 ratings, resulting in a consensus rating of Buy. The average one-year price target stands at $148.0, suggesting a potential 13.7% upside.
Understanding Analyst Ratings Among Peers
To provide a broader perspective, let’s compare UFP Industries’ analyst ratings and price targets to those of three prominent industry players: Simpson Manufacturing Co, Trex Co, and AAON.
*
Simpson Manufacturing Co:
Analysts have assigned an Outperform consensus rating with an average one-year price target of $218.0, indicating a potential 67.47% upside.*
Trex Co:
Analysts have assigned a Neutral consensus rating with an average one-year price target of $79.54, indicating a potential 38.9% downside.*
AAON:
Analysts project a Neutral trajectory with an average one-year price target of $114.33, indicating a potential 12.17% downside.Peer Analysis Summary
| Company | Consensus | Revenue Growth (%) | Gross Profit ($M) | Return on Equity (%) |
|—|—|—|—|—|
| UFP Industries | Buy | -6.95 | 362.74 | 3.92 |
| Simpson Manufacturing Co | Outperform | -1.65 | 278.55 | 5.16 |
| Trex Co | Neutral | 5.59 | 168.11 | 10.24 |
| AAON | Neutral | 10.43 | 113.09 | 6.85 |
Key Takeaway:
UFP Industries currently ranks at the bottom for Revenue Growth among its peers. It sits in the middle for Gross Profit but falls to the bottom for Return on Equity.Delving into UFP Industries’s Background
UFP Industries Inc was initially a supplier of lumber to the manufactured housing industry. Today, it has transformed into a multibillion-dollar holding company with subsidiaries around the globe, serving three key markets: retail, packaging, and construction.
A Deep Dive into UFP Industries’s Financials
Market Capitalization Analysis:
UFP Industries’ market capitalization falls below industry benchmarks, reflecting a smaller scale relative to its peers. This could be attributed to factors such as growth expectations or operational capacity.Revenue Growth:
Over a period of 3 months, UFP Industries’ revenue growth has faced challenges. As of June 30th, 2024, the company experienced a revenue decline of approximately -6.95%. This indicates a decrease in the company’s top-line earnings. In comparison to its peers, this revenue growth lags behind its industry counterparts. The company achieved a growth rate lower than the average among peers in the Industrials sector.Net Margin:
UFP Industries’ net margin trails behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 6.37%, the company may face hurdles in effectively managing costs.Return on Equity (ROE):
UFP Industries’ ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 3.92%, the company may face hurdles in achieving optimal financial performance.Return on Assets (ROA):
UFP Industries’ ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 2.95%, the company may face hurdles in generating optimal returns from its assets.Debt Management:
The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.13.To stay up-to-date on all earnings releases for UFP Industries, visit their earnings calendar on our site.
