- UFP Industries reported second-quarter earnings per share (EPS) of $1.70, missing both the previous year’s EPS of $2.05 and the estimate of $1.84.
- The company’s net sales for the quarter were $1.84 billion, a 3.5% decrease from the previous year, and below the expected $1.87 billion.
- Operating income stood at $123.1 million, representing a 23% decline from the previous year and falling short of the estimated $138.3 million.
- CEO Will Schwartz commented on the company’s progress, stating they are positioning UFP as a leaner and faster-growing enterprise in anticipation of market recovery.
- Analyst recommendations include 2 “buys,” 3 “holds,” and no “sells.”
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UFP Industries on Smartkarma
Analyst coverage of UFP Industries on Smartkarma reveals valuable insights from Baptista Research. In their report titled “UFP: Will Bold Investments in Deckorators & ProWood Fuel the Next Growth Wave?“, the analysts delve into the company’s fourth-quarter and full-year 2024 financial results. They highlight mixed performance against challenging economic conditions, noting total sales of $6.7 billion and an EBITDA of $682.3 million, reflecting a 10.3% EBITDA margin. Despite a robust balance sheet boasting nearly $1.2 billion in cash, pressures from declining demand across most business segments have impacted pricing and margins.
A look at UFP Industries Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| 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
According to Smartkarma Smart Scores, UFP Industries is looking at a neutral to positive long-term outlook. With a balanced score of 3 for Value, Dividend, Growth, and Momentum, the company shows stability across these key factors. Moreover, UFP Industries excels in Resilience with a score of 4, indicating a strong ability to weather economic uncertainties. As a holding company in the wood products industry, UFP Industries has a global reach through its subsidiaries, catering to construction and retail sectors.
In summary, UFP Industries, Inc. is positioned with a moderate to strong outlook based on the Smartkarma Smart Scores assessment. With a focus on wood products and serving customers worldwide, the company demonstrates resilience and stability in its financial performance. Investors may find UFP Industries attractive for its consistent performance across various factors despite not scoring exceptionally high in any single category.
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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