- Stella-Jones reported a second-quarter earnings per share (EPS) of C$1.91, slightly lower than last year’s C$1.94 but surpassing the estimate of C$1.78.
- Total sales fell by 1.4% year-over-year to C$1.03 billion, below the estimated C$1.06 billion.
- Utility Poles sales increased by 1.3% year-over-year to C$476 million, missing the estimate of C$483.5 million.
- Railway Ties sales declined by 9.4% year-over-year, reaching C$240 million against the expected C$264.2 million.
- Residential Lumber sales rose by 1.2% year-over-year to C$246 million, slightly below the projected C$247.4 million.
- Logs and Lumber segment saw a 4% year-over-year increase in sales, reaching C$26 million, surpassing the estimate of C$24.8 million.
- The company reported an EBITDA of C$189 million, a 5.5% decrease from the previous year but above the estimate of C$185.6 million.
- Operating income was C$155 million, down by 7.7% year-over-year, yet exceeded the estimated C$150.3 million.
- Net income decreased by 3.6% year-over-year to C$106 million, outperforming the estimate of C$98.7 million.
- Analysts’ ratings include 5 buy recommendations, 2 hold recommendations, and 1 sell recommendation.
A look at Stella-Jones Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Stella-Jones Inc. is a company that produces and markets industrial structures and support components made with pressure treated wood. Specializing in treated wood poles for electrical utilities and telecommunications, the company also offers railway ties, marine, and foundation pilings. According to Smartkarma Smart Scores, Stella-Jones Inc. has a Growth score of 4, indicating a positive long-term outlook for expanding its business operations.
With a Value score of 3, Resilience score of 3, and Momentum score of 4, Stella-Jones Inc. seems to be positioned moderately well in terms of its financial health and market performance. However, its Dividend score of 2 suggests that the company’s dividend payments may not be as strong as some investors would prefer. Overall, based on the Smartkarma Smart Scores, Stella-Jones Inc. shows promise for growth and market momentum, with areas for potential improvement in value and dividend payouts.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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