Universal Forest Products Earnings: Here’s Why Investors Like These Results

Universal Forest Products Inc. (NASDAQ:UFPI) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.5%.

Universal Forest Products Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 17.91% to $0.79 in the quarter versus EPS of $0.67 in the year-earlier quarter.

Revenue: Rose 24.37% to $738.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Universal Forest Products Inc. reported adjusted EPS income of $0.79 per share. By that measure, the company beat the mean analyst estimate of $0.67. It beat the average revenue estimate of $714.8 million.

Quoting Management: “We are working hard to manage through these changes effectively, and I`m pleased with the results our people were able to achieve in the second quarter,” said CEO Matthew J. Missad. “A drop in lumber prices of this magnitude, especially during the second quarter, typically has an adverse impact on the Company`s gross margins and profitability. Through the second quarter, we were able to reduce the impact with strong unit sales in many markets, particularly those tied to new housing and construction.” Despite the second-quarter decline, lumber prices remained 15 percent higher than the same period of 2012.”

Key Stats (on next page)…

Revenue increased 33.17% from $554.49 million in the previous quarter. EPS increased 203.85% from $0.26 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.51 to a profit $0.49. For the current year, the average estimate has moved down from a profit of $1.58 to a profit of $1.53 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)