Boise Cascade (NYSE:BCC) announced its quarterly earnings on Monday, revealing a strong performance that exceeded analyst forecasts. The construction company reported earnings of $0.24 per share (EPS), surpassing consensus estimates of $0.16 by $0.08, according to FiscalAI. The company also recorded a return on equity of 9.00% and a net margin of 2.96%. Revenue for the quarter reached $1.46 billion, slightly above the expected $1.45 billion.
Despite these positive results, Boise Cascade’s stock experienced a decline of 1.4% during mid-day trading, falling $1.18 to reach $80.95. A total of 875,408 shares changed hands, significantly higher than the average trading volume of 392,710. Over the past year, the stock has fluctuated between a low of $65.14 and a high of $108.43. Currently, the fifty-day moving average stands at $81.34, while the 200-day moving average sits at $78.86. The company holds a market capitalization of $3.00 billion, a price-to-earnings (P/E) ratio of 16.00, and a beta of 1.27. Financial ratios indicate a robust position, with a current ratio of 3.10, a quick ratio of 1.69, and a debt-to-equity ratio of 0.22.
Dividend Announcement and Analyst Ratings
In addition to its earnings report, Boise Cascade also announced a quarterly dividend of $0.22 per share, set to be paid on March 18, 2024. Shareholders on record as of February 23, 2024, will receive this dividend, which translates to an annualized dividend of $0.88 and a yield of 1.1%. The ex-dividend date is also February 23, 2024, and the company’s payout ratio currently stands at 17.39%.
Recent analyst assessments have varied for Boise Cascade. Weiss Ratings upgraded the company’s stock from a “sell (d+)” to a “hold (c-)” rating on January 28, 2024. Meanwhile, DA Davidson maintained a “buy” rating and set a target price of $95.00 on November 20, 2023. BMO Capital Markets reiterated an “outperform” rating on January 8, 2024, while Truist Financial raised its price target from $88.00 to $92.00 on January 6, 2024. Currently, five analysts have rated Boise Cascade as a “buy,” while three have assigned a “hold” rating. MarketBeat.com indicates an average rating of “Moderate Buy” with an average target price of $101.83.
About Boise Cascade
Boise Cascade operates as a prominent manufacturer and distributor of wood products and building materials across North America. The company’s operations are divided into two main segments: wood products manufacturing and building materials distribution. In the manufacturing segment, Boise Cascade produces a variety of engineered wood products, including plywood, oriented strand board (OSB), lumber, particleboard, and laminated veneer lumber (LVL). These products cater to residential, commercial, and industrial sectors. The distribution segment is responsible for sourcing and delivering building materials through an extensive network of distribution centers, serving professional builders, remodelers, contractors, and industrial customers.
Overall, Boise Cascade’s latest earnings report reflects a solid financial performance, positioning the company positively within the construction sector, despite the minor stock decline following the announcement.
