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

Boise Cascade Company BCC is slated to announce fourth-quarter 2020 results on Feb 22, after market close.

In the last reported quarter, its adjusted earnings topped the Zacks Consensus Estimate by 73.5%. The company’s top and bottom lines grew 300% and 25%, respectively, from the prior-year quarter. Markedly, it beat earnings expectations in all the last four quarters, with the average being 48.2%.

Trend in Estimate Revision

For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has been upwardly revised to $1.10 from 86 cents over the past 30 days. The estimated figure indicates an increase of 197.3% from 37 cents per share reported in the year-ago quarter.

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

Factors to Consider

Boise Cascade’s earnings and sales are expected to have increased in the fourth quarter. As the company’s performance is highly associated with the housing market, solid momentum in the markets served is expected to benefit the quarterly results. Solid demand for new housing across the United States might have helped it propel the entire mix of businesses.

For the Wood Products segment (contributing 22.9% to total net sales), the company’s continuous focus on establishing pre-COVID-19 manufacturing production levels owing to higher product demand is expected to have proved conducive to the segment sales in the quarter. Increase in the demand for plywood, higher plywood prices and increased sales volumes for I-joists are likely to have boosted segment sales. That said, higher wood fiber costs and lower net sales prices of Engineered wood products (EWP) are expected to reflect on the quarterly results.

For the Building Materials Distribution segment (contributing more than 90% to its total net sales), higher commodity sales, general line product sales and EWP sales are expected to have contributed to the segment’s sales growth in the quarter. Also, higher pricing might have been another positive factor.

What the Zacks Model Unveils

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 chances of an earnings beat.

Earnings ESP: Its Earnings ESP is -13.24%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Boise Cascade — which shares space with Louisiana-Pacific Corporation LPX, Potlatch Corporation PCH and Weyerhaeuser Company WY in the Zacks Building Products – Wood industry — currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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