UFP Net Income Doubles In Q2, EPS Beats Street Estimates

(RTTNews) - Michigan-based industrial and construction company, UFP Industries, Inc. (UFPI), reported a strong second quarter on Wednesday, primarily due to a 117% increase in revenue. The earnings for the company topped Street view.

The net income of the company was $175 million or $2.78 per share, up from $69.6 million or $1.08 per share in the same quarter last year. Six analysts polled by Thomson Reuters forecasted earnings of $1.8 per share for this quarter.

The revenue of the company also increased 117% to $2.7 billion from $1.24 billion in the same quarter last year. This increase was chiefly boosted by the 70% increase in selling prices. Six analysts predicted revenue of $2.2 billion.

Matthew J. Missad, the CEO of the company, believes that the new strategy has been a major force behind the rise. He also added," Another key contributor to our success is our improved pricing model and managed inventory programs, which allow us to mitigate the impact of lumber market fluctuations like those we experienced during the second quarter."

While the company did not provide any guidance for the following quarters, Missad added, "We expect market conditions to normalize during the second half of 2021. While falling lumber prices and more normalized demand create challenging year-over-year profitability comparisons for our retail segment, the stabilized lumber market should benefit our industrial and construction segments. Furthermore, we expect all of our segments to benefit from more stable pricing in 2022"