UFP Industries post earnings beat on strong retail growth
UFP Industries (NASDAQ:UFPI) report a 3rd quarter results beat Thursday after hours due to higher price margins and higher unit sales in the quarter.
UFPI stock is down 0.3% at $69.47 in midday trading.
3rd quarter revenue structure: retail $845.3 million (+21.4% y/y), industrial $584.8 million (+2% y/y), construction 777.1 million dollars (+ 7.5% y/y) and all other $115.6 million (+ 13.9% y/y).
UFPI’s retail segment posted the largest revenue growth in the quarter, with the company expecting more normalized demand in the near term.
UFPI new product sales amounted to $178 million (+38% y/y). New product sales were driven by Deckorator mineral-based composite flooring and Strip Pak composite packaging solutions.
Total SG&A expenses were $214.3 million, representing about 9.2% of total reported revenue in the third quarter.
Gross margin was 19.4% in the quarter compared with 15.6% a year ago.
UFPI in it Earnings Release said it continues to look for opportunities to acquire companies to drive growth, improve margins, and increase customer and shareholder value.
The company continues to monitor business activity and economic indicators for the Industry segment, which is still “mixed”. Prices remained stable amid inflationary pressures.
For the Construction unit – is expected to continue operating in the commercial and infrastructure markets. It is expected that the slight decline in the housing market will be “somewhat offset”.