Boise Cascade earnings: what to look for from BCC

What happened

Boise Cascade will report quarterly results Monday after market close. Last quarter it reported revenue of $1.83 billion, up 5.2% year on year, beating analyst revenue, earnings-per-share and EBITDA estimates. This quarter analysts expect revenue to grow 5.5% year on year.

Confirmed

Global impact / market context

The report will show whether the building products company can reverse last year's 2.7% revenue decline. Because Boise Cascade has missed revenue estimates multiple times in two years, a miss could weaken investor confidence, while a beat would support the case that demand and pricing are holding up.

Analyst inference

Two industrial distributors already reported strong results: Richardson Electronics grew revenue 18.9% year on year and beat estimates by 10.1%, while WESCO grew 16.6% and beat by 5.1%. Those results suggest parts of the industrial distribution sector are seeing solid demand, a useful comparison for Boise Cascade's report.

Analyst inference

What to watch

1. Watch whether Boise Cascade's revenue reaches the 5.5% year-on-year growth analysts expect, since the company has missed Wall Street revenue estimates several times over the past two years. Confirmed
2. Watch whether the company's earnings-per-share and EBITDA again beat estimates, which means profit measures before certain costs, after last quarter's solid beats on both. Proposed
3. Watch whether sales hold up relative to strong distributor peer results, since weak revenue could point to softer demand for building products and pressure the stock. Analyst inference

Evidence

• stockstory.org