Boise Cascade Misses Q4 Revenue Estimates, Key Metrics in Focus

Q4 CY2024 Highlights

- Revenue: $1.57 billion (miss by $10 million or 0.7%) - EPS (GAAP): $1.78 (miss by $0.02 or 1%) - Adjusted EBITDA: $128.7 million (beat by $3.2 million or 2.5%) - Operating Margin: 5.9% (down 1.5 percentage points YoY) - Free Cash Flow Margin: 0% (down from 3% YoY)

Company Overview

Boise Cascade (BCC) is a leading manufacturer and distributor of wood products and building materials, formed through a merger in the lumber industry.

Key Business Drivers

Building Material Distributors: - Focus on reliable selection and quick delivery of products. - Benefiting from increasing emphasis on supply chain management. Sales Growth: - Decent 7.7% compounded annual growth rate over the past five years. - Recent decline in annualized revenue growth to 10.5% over the last two years. Segment Breakdown: - Building Material Distribution: 91.8% of revenue (8.6% YoY decline over last two years) - Wood Products: 26.8% of revenue (6.2% YoY decline over last two years)

Q4 Financial Performance and Future Outlook

- Missed Wall Street's revenue estimates, reporting a 4.7% YoY decline. - Beat Adjusted EBITDA expectations. - Operating margin declined due to higher expenses. - Diluted EPS slightly missed estimates. - Analysts project 5.7% full-year EPS growth over the next 12 months.

Key Takeaways

- Mixed quarter with some misses and beats. - Positive EBITDA performance, but concerns over revenue and operating margin decline. - Future outlook remains uncertain, with analysts projecting modest EPS growth.

Additional Notes

- Free research report available for a comprehensive analysis of Boise Cascade's investment potential. - Valuation and business qualities should be considered before making any investment decisions.