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Boise Cascade (BCC) to Report Q4 Earnings: What's in Store?

Boise Cascade Company BCC is scheduled to report fourth-quarter 2022 results on Feb 21, after the closing bell.

In the last-reported quarter, the company’s earnings and sales surpassed the Zacks Consensus Estimate by 24% and 0.3%, respectively. Earnings and sales increased 139% and 15% year over year, respectively.

This engineered wood products and plywood company surpassed earnings estimates in all the trailing four quarters, with the average surprise being 30.9%.

Boise Cascade, L.L.C. Price and EPS Surprise

Boise Cascade, L.L.C. Price and EPS Surprise
Boise Cascade, L.L.C. Price and EPS Surprise

Boise Cascade, L.L.C. price-eps-surprise | Boise Cascade, L.L.C. Quote

Earnings & Revenue Expectations

The Zacks Consensus Estimate for Boise Cascade’s fourth-quarter earnings has decreased to $2.97 from $3.08 per share in the past 60 days. The estimated figure indicates a 30.3% decrease on a year-over-year basis. The consensus estimate for sales is pegged at $2.3 million, indicating a year-over-year rise of 2.3%.

Factors to Note

Slow construction activities are expected to weigh on Boise Cascade’s fourth-quarter 2022 results. While prospects for housing and wood products/timber remain positive in the longer term due to an aging housing stock, underbuilding, increasing household formations and rising incomes, BCC’s quarterly results are expected to have weighed by slowing residential constriction given higher mortgage rates and economic uncertainty. The slowdown in the U.S. housing market has been prompting weaker demand for wood products and timber.

Nonetheless, the acquisition of Coastal Plywood and its plywood manufacturing operations is likely to have contributed to its performance.

Meanwhile, continuing weakness in wood products demand and lower pricing are also likely to have impacted results.

Again, supply-chain challenges, higher manufacturing costs and higher input costs (particularly fiber and resin) are expected to have weighed on the quarterly profitability.

What the Zacks Model Says

Our proven model does not conclusively predict an earnings beat for Boise Cascade this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

BCC has an Earnings ESP of 0.00% and currently carries a Zacks Rank #4 (Sell).

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You can see the complete list of today’s Zacks #1 Rank stocks here.

Stock With the Favorable Combination

Here is one company in the Zacks Construction sector, which according to our model, has the right combination of elements to beat on earnings in their respective quarters to be reported.

Fluor Corporation FLR has an Earnings ESP of +2.48% and carries a Zacks Rank #2.

FLR’s earnings topped the consensus mark in one of the last four quarters but missed on three occasions, with the average negative surprise being 38.2%.

A Few Recent Constructions Releases

Weyerhaeuser Company WY reported fourth-quarter 2022 results, wherein its earnings beat the Zacks Consensus Estimate, but declined from the year-ago period's levels. The quarter’s performance reflects strong execution across the businesses, which was offset by macroeconomic headwinds, supply-chain disruptions and dynamic market conditions.

On an impressive note, WY unveiled a 90 cents per share supplemental dividend. The company also increased its base dividend by 5.9%, repurchased $550 million in shares and refinanced $900 million of debt.

Martin Marietta Materials, Inc. MLM reported mixed results for fourth-quarter 2022. Earnings beat the Zacks Consensus Estimate but revenues (products and services) missed the same. On a year-over-year basis, the metrics declined due to inclement weather in a number of key markets and higher operating costs.

Looking forward, Ward Nye, chairman and CEO of MLM, said, “In total, we expect full year 2023 aggregates shipments to be relatively flat but, given the carryover effects of our 2022 commercial actions and broad acceptance of our January 1, 2023 price increases, we are confident in our ability to continue to deliver accelerated margin expansion.”

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Fluor Corporation (FLR) : Free Stock Analysis Report

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Martin Marietta Materials, Inc. (MLM) : Free Stock Analysis Report

Boise Cascade, L.L.C. (BCC) : Free Stock Analysis Report

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