Why Is Boise Cascade (BCC) Up 5.7% Since Last Earnings Report?

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].