Boise Cascade Q2 revenue misses estimates

Overview

• Boise Cascade Q2 revenue declines 3% yr/yr, missing analyst expectations, per LSEG data

• Net income in the qtr falls 45% to $62 mln

• Company completes Oakdale mill modernization, enhancing operational efficiency

Outlook

• Boise Cascade sees near-term demand influenced by mortgage rates and consumer sentiment

• Company expects long-term demand supported by housing undersupply and aging stock

• Boise Cascade anticipates dynamic pricing for commodity products due to economic factors

Result Drivers

• MILL OUTAGE COSTS - Expected costs related to Oakdale plywood mill outage impacted earnings

• LOWER SALES PRICES - Decrease in sales driven by lower prices for LVL and I-joists

• MUTED HOUSING DEMAND - Underlying demand for new residential construction remained muted, affecting sales

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy."

• Wall Street's median 12-month price target for Boise Cascade Co is $106.50, about 21.7% above its August 1 closing price of $83.35

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBw61GC7Ba