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Core Viewpoint - Boise Cascade reported weaker-than-expected Q3 2024 earnings, with adjusted EPS missing estimates and sales declining year over year, indicating challenges in the current market environment [2][5]. Financial Performance - Adjusted EPS for Q3 2024 was $2.33, missing the Zacks Consensus Estimate of $2.37 by 1.7%, and down from $3.58 in the same quarter last year [5]. - Quarterly sales reached $1.714 billion, slightly above the consensus mark of $1.711 billion but down 7% year over year [5]. - Adjusted EBITDA was $154.5 million, reflecting a 29% decrease from the prior-year quarter [6]. Segment Analysis - **Wood Products**: Sales were $453.9 million, down 12% year over year, primarily due to lower plywood prices and reduced sales of engineered wood products. Adjusted EBITDA for this segment fell 37% to $77.4 million [7]. - **Building Materials Distribution (BMD)**: Sales decreased 6% year over year to $1.57 billion, driven by a 6% drop in sales prices, while sales volumes remained flat. Adjusted EBITDA declined 16% to $87.7 million [8]. Liquidity and Debt - Total liquidity as of September 30, 2024, was $1.157 billion, down from $1.35 billion at the end of 2023, with cash and cash equivalents at $761.6 million [9]. - Long-term debt increased slightly to $445.9 million from $445.3 million at the end of 2023 [9]. Cash Flow and Share Repurchase - Net cash provided by operations for the nine months ended September 30, 2024, was $343.8 million, down from $521.1 million in the previous year [10]. - The company repurchased 1,232,345 shares of common stock for a total value of $158.5 million during the first nine months of 2024 [11]. Market Outlook - Estimates for Boise Cascade have been trending downward, indicating a potential for continued challenges in the near term. The company holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns [12][14].

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Core Insights - Boise Cascade Company (BCC) reported disappointing third-quarter 2024 results, with earnings falling short of the Zacks Consensus Estimate and declining year over year [1][4] - Although quarterly sales slightly exceeded consensus expectations, they still represented a 7% year-over-year decline [4] Financial Performance - Adjusted earnings per share (EPS) for the quarter were $2.33, missing the Zacks Consensus Estimate of $2.37 by 1.7%, compared to $3.58 in the same quarter last year [4] - Quarterly sales amounted to $1.714 billion, slightly above the consensus mark of $1.711 billion, but down 7% from the previous year [4] Segment Analysis - **Wood Products Segment**: Sales decreased by 12% year over year to $453.9 million, driven by lower plywood prices and reduced sales of engineered wood products (EWP) [5] - Adjusted EBITDA for this segment fell 37% to $77.4 million from $122.9 million a year ago [5] - **Building Materials Distribution (BMD) Segment**: Sales dropped 6% year over year to $1.57 billion, primarily due to a 6% decrease in sales prices, with sales volumes remaining flat [6] - Adjusted EBITDA for the BMD segment decreased 16% year over year to $87.7 million from $104.9 million [7] Cost and Expenses - In the Wood Products segment, costs and expenses as a percentage of sales increased to 88.1% from 80.7% year over year, attributed to rising materials and labor costs [6] - For the BMD segment, costs and expenses as a percentage of sales rose to 95.2% from 94.2%, influenced by higher selling and distribution expenses [7] Liquidity and Cash Flow - Total liquidity as of September 30, 2024, was $1.157 billion, down from $1.35 billion at the end of 2023, including $395.7 million of undrawn committed bank line availability [8] - Cash and cash equivalents decreased to $761.6 million from $949.6 million at the end of 2023 [8] - Net cash provided by operations for the nine months ended September 30, 2024, was $343.8 million, down from $521.1 million in the prior year [9] Share Repurchase - During the first nine months of 2024, the company repurchased 1,232,345 shares of its common stock for a total value of $158.5 million [10]

Financial Data and Key Metrics Changes - Consolidated third quarter sales were $1.7 billion, down 7% from the third quarter of 2023 [5] - Net income was $91 million or $2.33 per share, compared to $143.1 million or $3.58 per share in the prior year quarter [5] - Wood Products sales were $453.9 million, down 12% year-over-year [7] - BMD sales were $1.6 billion, down 6% from the third quarter of 2023 [9] - Segment EBITDA for Wood Products was $77.4 million, down from $122.9 million in the previous year [8] - BMD reported segment EBITDA of $87.7 million, down from $104.9 million in the prior year [9] Business Line Data and Key Metrics Changes - Wood Products segment saw a decrease in sales primarily due to lower EWP and plywood sales prices and higher conversion costs [8] - I-joists sales volumes were down 8% year-over-year and 10% sequentially, influenced by housing starts and competition from other products [10] - Plywood sales volume was flat year-over-year at 391 million feet, but the average net sales price decreased by 13% year-over-year [12] - BMD's gross margin percentage was 15.7%, up 50 basis points year-over-year, reflecting growth in general line sales [15] Market Data and Key Metrics Changes - Total US housing starts decreased by 3% year-over-year, with single-family housing starts down 1% [5] - Single-family housing starts are outpacing 2023 levels by 10%, while multifamily starts have declined sharply [23] - Home affordability remains a challenge due to high home prices and financing costs, impacting the supply of existing housing stock [24] Company Strategy and Development Direction - The company continues to deploy capital through organic growth projects and returns to shareholders, with capital expenditures of $136 million in the first nine months of 2024 [18][19] - The company expects capital spending to be between $200 million and $220 million in 2025 [19] - The strategy includes ongoing investments in existing assets and the potential for M&A opportunities [21] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about medium to long-term housing fundamentals despite near-term uncertainties [26] - The company expects modest growth in home improvement spending in 2025 due to the aging housing stock and homeowner equity [25] - Management highlighted the importance of two-step distribution and the ability to pivot quickly in a volatile market [50] Other Important Information - The company paid $220 million in combined regular and special dividends during the nine months ended September 30, 2024 [19] - Share repurchases totaled approximately $165 million year-to-date, with an additional 1.4 million shares authorized for repurchase [20] Q&A Session Summary Question: Can you talk about the progression of sales in BMD during the quarter? - Management noted that daily sales pace was steady through the quarter, with September impacted by two fewer sales days [29] Question: What are you hearing from major customers in BMD regarding demand and inventory levels? - Customers are proceeding cautiously, with a focus on distribution in the current market [30] Question: How do you see EWP pricing correlating with lumber pricing? - Management indicated that EWP pricing is primarily driven by demand and operating rates rather than lumber prices [33] Question: Can you discuss the performance of the BROSCO business? - The BROSCO business has performed well, exceeding expectations [51] Question: What is the timeline for the Oakdale, Louisiana plant modernization? - The project will start this week with demolition, and the plant will operate at about 50% capacity during the first quarter [43] Question: How are you approaching inventories in your distribution business? - Management emphasized the need to balance inventory levels to serve customers while preparing for seasonal slowdowns [42]

Core Viewpoint - Boise Cascade reported quarterly earnings of $2.33 per share, missing the Zacks Consensus Estimate of $2.37 per share, and down from $3.58 per share a year ago, indicating an earnings surprise of -1.69% [1] - The company posted revenues of $1.71 billion for the quarter, surpassing the Zacks Consensus Estimate by 0.15%, but down from $1.83 billion year-over-year [2] Financial Performance - Over the last four quarters, Boise Cascade has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] - The current consensus EPS estimate for the upcoming quarter is $1.88 on revenues of $1.6 billion, and for the current fiscal year, it is $9.69 on revenues of $6.75 billion [7] Stock Performance - Boise Cascade shares have increased by approximately 3.8% since the beginning of the year, compared to the S&P 500's gain of 20.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Outlook - The Building Products - Wood industry, to which Boise Cascade belongs, is currently in the bottom 32% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of Boise Cascade's stock may be influenced by the overall outlook for the industry [8]

Financial Performance - Income from operations for Q3 2024 was $117.4 million, down from $185.6 million in Q3 2023, representing a decrease of 36.7%[112] - Total sales for Q3 2024 were $1,713.7 million, a decline from $1,834.4 million in Q3 2023, marking a decrease of 6.6%[119] - Total sales decreased by $120.7 million, or 7%, to $1,713.7 million for the three months ended September 30, 2024, compared to $1,834.4 million for the same period in 2023[124] - For the nine months ended September 30, 2024, total sales decreased by $37.2 million, or 1%, to $5,156.8 million compared to $5,194.0 million for the same period in the prior year[124] - Segment income for the nine months ended September 30, 2024, decreased by $75.1 million to $197.9 million from $273.0 million for the same period in 2023, primarily due to lower EWP and plywood sales prices and higher wood fiber and conversion costs[136] Segment Performance - In the Wood Products segment, income decreased by $45.7 million to $53.9 million due to lower engineered wood products (EWP) and plywood sales prices, as well as higher conversion costs[112] - The Building Materials Distribution (BMD) segment saw income decrease by $22.3 million to $74.8 million, driven by increased selling and distribution expenses and depreciation and amortization expenses of $10.0 million and $5.1 million, respectively[112] - Wood Products segment sales decreased by $61.3 million, or 12%, to $453.9 million for the three months ended September 30, 2024, driven by lower plywood sales prices of 13%[125] - Building Materials Distribution sales decreased by $102.8 million, or 6%, to $1,567.5 million for the three months ended September 30, 2024, with commodity sales down 12%[127] - Building Materials Distribution segment income decreased by $22.3 million to $74.8 million for the three months ended September 30, 2024, driven by increased selling and distribution expenses and a decrease in gross margin[137] Cost and Expenses - Material costs, labor, and other operating expenses (excluding depreciation) for Q3 2024 were $1,375.7 million, accounting for 80.3% of sales, compared to 78.6% in Q3 2023[119] - Depreciation and amortization expenses increased to $36.9 million in Q3 2024 from $31.5 million in Q3 2023[119] - Materials, labor, and other operating expenses decreased by $66.5 million, or 5%, to $1,375.7 million for the three months ended September 30, 2024[129] - Average composite panel prices were 19% lower for the three months ended September 30, 2024, compared to the same period in the prior year[124] - Average composite lumber prices decreased by 13% for the three months ended September 30, 2024, compared to the same period in the prior year[124] Cash Flow and Liquidity - Cash and cash equivalents at the end of Q3 2024 were $761.6 million, with total available liquidity of $1,157.3 million, while outstanding debt was $450.0 million[113] - For the nine months ended September 30, 2024, net cash provided by operations was $343.8 million, a decrease of $177.4 million compared to $521.1 million in the same period in 2023, primarily due to an increase in working capital[148] - The company used $135.8 million for purchases of property and equipment during the nine months ended September 30, 2024, compared to $99.3 million in the same period in 2023[150] - Financing activities used $391.6 million of cash during the nine months ended September 30, 2024, including $220.5 million in common stock dividend payments and $158.5 million for stock repurchases[153] - As of September 30, 2024, the company had $761.6 million in cash and cash equivalents and $450.0 million in debt, resulting in $1,157.3 million of available liquidity[143] Market Outlook - U.S. housing starts are forecasted to be approximately 1.35 million in 2024, down from 1.42 million in 2023, with single-family starts outpacing 2023 levels by 10%[114] - The company expects modest growth in home improvement spending in 2025, driven by the aging U.S. housing stock and elevated homeowner equity[114] Risks and Controls - The company faces risks related to commodity price fluctuations, economic conditions, and competition, which may impact future sales and profitability[116] - As of September 30, 2024, there have been no material changes in the company's exposure to market risk compared to the disclosures in the 2023 Form 10-K[165] - The company's disclosure controls and procedures were evaluated and deemed effective as of September 30, 2024, by the CEO and CFO[166] - There were no changes in the internal control over financial reporting during the three months ended September 30, 2024, that materially affected the reporting[167] - The company is involved in legal proceedings typical of its business operations, but does not anticipate any material adverse effects on its financial position[169] - The company uses a threshold of $1 million for disclosing environmental proceedings as per SEC regulations[170] Tax and Interest - Interest income decreased by $3.6 million to $10.2 million for the three months ended September 30, 2024, compared to $13.8 million for the same period in 2023, primarily due to lower average balances of cash equivalents[140] - The effective income tax rate for the nine months ended September 30, 2024, was 24.8%, down from 25.4% for the same period in 2023[142] Capital Expenditures - The company expects capital expenditures in 2024 to total approximately $220 million to $240 million, focusing on business improvement and efficiency projects[151]

[Third Quarter 2024 Financial Performance](index=1&type=section&id=Third%20Quarter%202024%20Financial%20Performance) Boise Cascade reported a decline in third-quarter 2024 financial results, with sales and net income decreasing significantly, while the CEO highlighted resilience in a moderate demand environment and ongoing strategic investments [Third Quarter 2024 Highlights](index=1&type=section&id=Third%20Quarter%202024%20Highlights) Boise Cascade reported a decline in its third-quarter 2024 financial results compared to the same period in 2023, with sales decreasing by 7% to $1.71 billion and net income falling by 36% to $91.0 million Consolidated Results Q3 2024 vs Q3 2023 (in millions, except per-share data) | Metric | 3Q 2024 | 3Q 2023 | % Change | | :--- | :--- | :--- | :--- | | Sales | $1,713.7 | $1,834.4 | (7)% | | Net Income | $91.0 | $143.1 | (36)% | | Net Income per common share - diluted | $2.33 | $3.58 | (35)% | | Adjusted EBITDA | $154.5 | $216.5 | (29)% | - The financial results were achieved in what the company described as a 'moderate demand environment'[3](index=3&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Nate Jorgensen credited the company's associates and its integrated business model for delivering good financial results despite a moderate demand environment, confirming progress on strategic investments and capital deployment - The CEO highlighted the company's ability to deliver good financial results due to the efforts of its associates and its unique business model combining engineered wood products (EWP) with a nationwide wholesale distribution network[3](index=3&type=chunk) - The company is continuing to advance its key strategic investment initiatives and deploy capital to shareholders[3](index=3&type=chunk) - Looking ahead, the company expects normal seasonality through the winter and is prepared to adjust to changes in customer and vendor demand[3](index=3&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) Both Wood Products and Building Materials Distribution segments experienced sales and income declines in Q3 2024, primarily due to lower prices and increased costs [Wood Products](index=2&type=section&id=Wood%20Products) The Wood Products segment experienced a 12% decrease in sales to $453.9 million and a 46% drop in segment income to $53.9 million in Q3 2024, driven by lower sales prices and reduced volumes Wood Products Segment Financials (in millions) | Metric | 3Q 2024 | 3Q 2023 | % Change | | :--- | :--- | :--- | :--- | | Sales | $453.9 | $515.2 | (12)% | | Segment Income | $53.9 | $99.6 | (46)% | Price and Volume Changes (Q3 2024 vs. Q3 2023) | Product | Average Net Selling Prices | Sales Volumes | | :--- | :--- | :--- | | LVL | (5)% | —% | | I-joists | (6)% | (8)% | | Plywood | (13)% | —% | - The decrease in segment income was attributed to lower EWP and plywood sales prices, higher conversion costs, and lower I-joist sales volumes[7](index=7&type=chunk) [Building Materials Distribution](index=2&type=section&id=Building%20Materials%20Distribution) The Building Materials Distribution (BMD) segment reported a 6% decrease in sales to **$1.57 billion** and a 23% decrease in segment income to **$74.8 million** for Q3 2024, driven by lower prices and increased expenses BMD Segment Financials (in millions) | Metric | 3Q 2024 | 3Q 2023 | % Change | | :--- | :--- | :--- | :--- | | Sales | $1,567.5 | $1,670.3 | (6)% | | Segment Income | $74.8 | $97.1 | (23)% | - The sales decrease was driven by a **6% decline in sales prices**, with sales volumes remaining flat year-over-year[8](index=8&type=chunk) - Excluding the BROSCO acquisition, sales would have decreased by **9%**[8](index=8&type=chunk) - By product line, commodity sales fell **12%** and EWP sales fell **14%**, while general line product sales increased by **4%**[8](index=8&type=chunk) - Segment income decreased due to a **$7.7 million reduction in gross margin** and increased selling, distribution, depreciation, and amortization expenses[9](index=9&type=chunk) [Financial Position and Capital Allocation](index=2&type=section&id=Financial%20Position%20and%20Capital%20Allocation) Boise Cascade maintains a strong liquidity position with substantial cash reserves and undrawn credit, while actively deploying capital through planned expenditures, dividends, and share repurchases [Balance Sheet and Liquidity](index=2&type=section&id=Balance%20Sheet%20and%20Liquidity) As of September 30, 2024, Boise Cascade maintained a strong liquidity position with **$1.16 billion** in total available liquidity, comprising **$761.6 million** in cash and **$395.7 million** in undrawn credit, against **$450.0 million** of outstanding debt Liquidity Position as of September 30, 2024 (in millions) | Component | Amount | | :--- | :--- | | Cash and cash equivalents | $761.6 | | Undrawn committed bank line | $395.7 | | **Total available liquidity** | **$1,157.3** | | Outstanding debt | $450.0 | [Capital Allocation](index=3&type=section&id=Capital%20Allocation) The company plans capital expenditures of $220-$240 million for 2024 and $200-$220 million for 2025, while actively returning capital to shareholders through dividends and share repurchases - Capital expenditure is projected to be between **$220 million and $240 million** in 2024, and between **$200 million and $220 million** in 2025[11](index=11&type=chunk) - A quarterly dividend of **$0.21 per share** was declared, payable on December 18, 2024[12](index=12&type=chunk) - The company repurchased **1,232,345 shares** for **$158.5 million** in the first nine months of 2024[13](index=13&type=chunk) - The board authorized an additional **1.4 million shares** for repurchase, leaving approximately **2 million shares** available under the program as of October 31, 2024[13](index=13&type=chunk) [Outlook](index=3&type=section&id=Outlook) The company's outlook is driven by residential construction trends and faces risks from commodity price volatility and rising input costs [Market Outlook](index=3&type=section&id=Market%20Outlook) The company's market outlook is tied to residential construction, with U.S. housing starts projected at 1.35 million in 2024 and 1.40 million in 2025, supported by demographics despite affordability challenges - Demand is primarily correlated with new residential construction, especially single-family housing starts[14](index=14&type=chunk) - Current industry forecasts for U.S. housing starts are approximately **1.35 million** in 2024 and modestly above **1.40 million** in 2025[14](index=14&type=chunk) - Home affordability remains a challenge, but large homebuilders are addressing it by reducing home sizes and offering mortgage rate buydowns[14](index=14&type=chunk) - Favorable demographic trends and low unemployment are expected to support demand[14](index=14&type=chunk) [Business Risks](index=3&type=section&id=Business%20Risks) The company faces significant business risks from commodity price volatility and rising input costs, which can lead to sales declines and margin compression in both its manufacturing and distribution segments - The company has sales and profitability exposure to declines in commodity product prices and rising input costs[15](index=15&type=chunk) - The distribution business faces margin pressure during periods of declining prices, which can negatively impact sales and profitability[15](index=15&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) The financial statements detail the company's Q3 2024 performance, balance sheet position, and cash flow activities, reflecting decreased sales and profitability alongside a strong liquidity profile [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For the third quarter of 2024, Boise Cascade generated sales of $1.71 billion, with income from operations at $117.4 million and net income at $91.0 million, representing a significant decrease from the prior-year quarter Q3 Consolidated Statements of Operations Highlights (in millions) | Line Item | 3Q 2024 | 3Q 2023 | | :--- | :--- | :--- | | Sales | $1,713.7 | $1,834.4 | | Income from operations | $117.4 | $185.6 | | Net income | $91.0 | $143.1 | [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) As of September 30, 2024, the company's balance sheet showed total assets of $3.44 billion, with cash and cash equivalents at $761.6 million, total liabilities at $1.32 billion, and total stockholders' equity at $2.12 billion Balance Sheet Highlights (in millions) | Line Item | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $761.6 | $949.6 | | Total current assets | $2,012.2 | $2,056.8 | | Total assets | $3,441.6 | $3,458.6 | | Total current liabilities | $643.2 | $594.1 | | Total stockholders' equity | $2,123.4 | $2,195.7 | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2024, net cash provided by operations was $343.8 million, while net cash used for financing activities significantly increased to $391.6 million, resulting in a net decrease in cash of $188.0 million Nine Months Ended Sep 30 Cash Flow Highlights (in millions) | Line Item | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operations | $343.8 | $521.1 | | Net cash used for investment | ($140.1) | ($96.8) | | Net cash used for financing | ($391.6) | ($149.7) | | Net (decrease) increase in cash | ($188.0) | $274.6 | [Supplemental Information](index=6&type=section&id=Supplemental%20Information) This section provides detailed segment-level financial data and reconciliations of non-GAAP measures like Adjusted EBITDA to GAAP net income [Segment Information](index=6&type=section&id=Segment%20Information) In Q3 2024, the Wood Products segment generated sales of $453.9 million and income of $53.9 million, while the Building Materials Distribution segment had sales of $1.57 billion and income of $74.8 million Q3 2024 Segment Sales and Income (in millions) | Segment | Sales | Income | | :--- | :--- | :--- | | Wood Products | $453.9 | $53.9 | | Building Materials Distribution | $1,567.5 | $74.8 | | **Total Segment Income** | **-** | **$128.7** | [Reconciliation of Non-GAAP Measures](index=12&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) The company provides a reconciliation from GAAP Net Income to non-GAAP measures EBITDA and Adjusted EBITDA, showing Net Income of $91.0 million reconciled to an Adjusted EBITDA of $154.5 million for Q3 2024 Reconciliation of Net Income to Adjusted EBITDA (in millions) | Line Item | 3Q 2024 | 3Q 2023 | | :--- | :--- | :--- | | Net income | $91.0 | $143.1 | | Interest, Taxes, D&A | $62.6 | $73.1 | | EBITDA | $153.6 | $216.1 | | Change in fair value of interest rate swaps | $0.9 | $0.3 | | **Adjusted EBITDA** | **$154.5** | **$216.5** | Segment EBITDA (in millions) | Segment | 3Q 2024 | 3Q 2023 | | :--- | :--- | :--- | | Wood Products EBITDA | $77.4 | $122.9 | | Building Materials Distribution EBITDA | $87.7 | $104.9 |

Core Viewpoint - The market anticipates a year-over-year decline in Boise Cascade's earnings due to lower revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - Boise Cascade is expected to report quarterly earnings of $2.37 per share, reflecting a year-over-year decrease of 33.8% [3]. - Revenues are projected to be $1.71 billion, down 6.7% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 3.3% higher in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the potential deviation from the consensus estimate, with positive readings being more predictive of earnings beats [6][7]. - A positive Earnings ESP combined with a Zacks Rank of 1, 2, or 3 has shown a nearly 70% success rate for positive surprises [8]. Historical Performance - In the last reported quarter, Boise Cascade exceeded the expected earnings of $2.65 per share, achieving $2.84, which was a surprise of +7.17% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Conclusion - While Boise Cascade does not appear to be a strong candidate for an earnings beat, investors should consider other influencing factors before making investment decisions [16].

Core Viewpoint - Boise Cascade Company (BCC) has outperformed the Zacks Building Products - Wood industry in the past three months, gaining 2.6% compared to the industry's 0.5% decline, but faces challenges from softer housing demand, increased costs, and pricing fluctuations that may hinder future stock performance [1][3]. Summary by Category Stock Performance - BCC's shares have increased by 2.6% over the last three months, contrasting with a 0.5% decline in the industry [1]. - The company's earnings estimates for 2024 have decreased from $10.41 to $9.76 per share, reflecting a 19.5% decline year-over-year [3]. Housing Market Trends - The demand for BCC's products is closely tied to new residential construction and repair activities, which are currently affected by lower multi-family housing starts compared to single-family starts [5]. - Economic uncertainties and high mortgage rates are contributing to a weaker demand environment for BCC's products [5]. Pricing and Cost Challenges - BCC is experiencing pricing pressures, particularly in engineered wood products, with prices for I-joists and laminated veneer lumber declining by 3% and 2% respectively in Q2 2024 [6]. - The company's costs and expenses rose by 2.5% year-over-year in the first half of 2024, with costs as a percentage of total sales increasing by 140 basis points to 91.9% [7].