UFP Industries Q2 Earnings & Net Sales Beat, Down Y/Y
UFP Industries, Inc. (NASDAQ: UFPI) reported impressive results for the second quarter of 2024. Both earnings and net sales surpassed the Zacks Consensus Estimate. The top and bottom lines, however, declined on a year-over-year basis due to lower contributions from Retail and Packaging businesses.
The company remains focused on its long-term expansion plans and improvement strategies amid a weaker environment and near-term softness in demand. These efforts are investments in automation and consolidating operations to eliminate redundancies, as well as reduce costs and enhance the profitability of its facilities.
Earnings & Revenue Discussion
UFP Industries reported earnings per share of $2.05, which topped the consensus mark of $2.00 by 2.5% but declined 13.1% from the year-ago quarter’s level of $2.36.
UFP Industries, Inc. Price, Consensus and EPS Surprise
UFP Industries, Inc. price-consensus-eps-surprise-chart | UFP Industries, Inc. Quote
Net sales of $1.9 billion beat the consensus mark of $1.87 billion by 1.7% but declined 7% year over year. The downside was mainly due to a 6% fall in selling prices and a 1% decline in organic unit sales. New product sales of $134 million contributed 7% to total net sales versus 7.4% in the prior-year quarter.
Segment Discussion
UFP Retail Solutions: The segment reported net sales of $809.1 million for the quarter (below our projection of $848.7 million), which declined 14% year over year due to a 7% decline in selling prices and 5% lower organic unit sales. Also, a 2% reduction due to the transfer of certain sales to other segments added to the decline.
Adjusted EBITDA margin rose 130 basis points (bps) from the prior year to 8.7%.
UFP Packaging: The segment’s net sales totaled …
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