Boise Cascade Co (NYSE:BCC) released earnings and showed a strong quarter. Unfortunately it missed estimates and the stock was hurt in trading. Fourth quarter revenue came in at $862 million and the company showed a bottom-line profit of $15.7 million. That equates to an EPS of 40 cents. But analysts wanted to see a gain of 50 cents per share and the stock took a little beating because of that. For the year2014 the company showed revenues of $3.57 billion and a bottom-line of $80 million. The year-end EPS was $2.03.
The company showed strong numbers for the quarter but it wasn’t enough for finicky analysts. It’s hard to understand that double-digit growth would not be enough but it is the reality of the industry. This caused to the stock absorbing some unexpected selling pressure. The company showed strongprofits but estimates were for more revenue. Boise Cascade Co (NYSE:BCC)’s wood division remained strong and outlooks for 2015 are pointing to it not letting up. Building materials distribution sales were also good contributors. The company showed solid strength across all of its divisions.
Wood product sales grew 5% to $317million and the building materials division grew by 9% to $669 million. The construction industry was slower than expected though. That segment is looking to grow in 2015 as the US economy and job market gets healthier. Boise Cascade Co (NYSE:BCC) IPO’d in 2013 and has been quietly building its focused segments. The recent slide in home building has hurt though. The stock price has been hampered by the erratic earnings reports of the past. This was compounded by a situation in the builders market that has also been up and down. Once that stabilizes, the company’s earnings will also.
The selloff hurt the stock but the positive is the free fall stopped above support. As investors look deeper into the numbers there is some value here and that may cause a quick turnaround in the stock price.
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