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Boise Cascade (BCC) to Post Q1 Earnings: What's in Store?

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Boise Cascade Company (BCC - Free Report) is slated to announce first-quarter 2021 results on May 6, after market close.

In the last reported quarter, its adjusted earnings topped the Zacks Consensus Estimate by 60%. The company’s top and bottom line grew 33.6% and 375.7%, respectively, from the prior-year quarter. Markedly, it surpassed earnings expectations in the last four quarters, the average surprise being 48%.

Trend in Estimate Revision

For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has been upwardly revised to $2.50 from $1.91 over the past 30 days. The estimated figure indicates an increase of 296.8% from 63 cents per share reported in the year-ago quarter.

Factors to Consider

Boise Cascade’s earnings are expected to have increased in the first quarter as the company is experiencing robust demand in the housing market. Higher proportion in the single-family homes and accelerated demand for new residential construction across the United States might have helped the company’s performance. Also, pricing has continued to increase and is expected remain at elevated levels in early 2021.

The company is witnessing periodic short-term disruptions due to COVID-related restrictions, particularly for LVL and I-joists (together referred as EWP) as well as at Building Materials Distribution (BMD) centers. Nevertheless, rise in demand for new residential construction as well as repair-and-remodeling activity owing to low mortgage rates, continuation of work-from-home practices and favorable demographics are likely to have somewhat aided its top line.

Also, prices for commodity lumber and panel products are rising, which is likely to have supported the bottom-line performance.

Boise Cascade, L.L.C. Price and EPS Surprise

 

Boise Cascade, L.L.C. Price and EPS Surprise

Boise Cascade, L.L.C. price-eps-surprise | Boise Cascade, L.L.C. Quote

What Our Model Indicates

Our proven model does not conclusively predict an earnings beat for Boise Cascade this time around. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here, as you will see below.

Earnings ESP: Earnings ESP for Boise Cascade is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently has a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With Favorable Combination

Here are some companies in the Zacks Construction sector, which according to our model have the right combination of elements to post earnings beat in their respective quarters to be reported.

Louisiana-Pacific Corporation (LPX - Free Report) has an Earnings ESP of +3.80% and a Zacks Rank #1.

TopBuild Corp. (BLD - Free Report) has an Earnings ESP of +4.28% and a Zacks Rank #2.

Advanced Drainage Systems, Inc. (WMS - Free Report) has an Earnings ESP of +2.63% and a Zacks Rank #2.

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