Boise Cascade posted $0.40 in earnings per share, lower than the $0.53 per share consensus estimate

The shares of Boise Cascade plummeted after reporting fourth quarter earnings that missed the consensus estimates of Wall Street analysts. The stock price of the company was down more than 13% to $$37.04 per share at the time of this writing around 11:36 A.M. in New York.

Boise Cascade is a manufacturer of vertically-integrated wood products and distributor of building materials in Canada and the United States.

Boise Cascade

Boise Cascade financial results

During the fourth quarter, Boise Cascade achieved earnings of $15.74 million of $0.40 per share, an increase of 60% from $9.8 million or $0.25 per share in the same period a year ago. The company said its revenue increased 8% to $862 million from $798.3 million in the year-ago quarter.

Its earnings and revenue were lower than the $0.53 per share and $871.8 million expected by analyst.

Boise Cascade said its EBITDA rose 27% to $42.03 million from $33.13 million in the same period last year.

Boise Cascade reported that its Wood Products segment including its Building Materials Distribution segment generated $317 million sales. The company said the sales growth was driven primarily by the price increases in its plywood and engineered wood products.

The company has $163.5 million of cash and cash equivalents by the end of 2014. It has also $266.8 million of undrawn committed bank line availability and $301.4 million of outstanding debt.

In a statement, Tom Carlie CEO of Boise Cascade said, “We are pleased by our results in 2014, a year in which the Company generated near double-digit revenue growth and almost $200 million in EBITDA… With our leading position in both the manufacturing and distribution businesses, we are optimistic about our future.”

Carlie added that he is pleased with strength of the leadership team and culture of the company as he moves towards retirement after serving the company for 42 years. According to him, the board of directors of Boise Cascade is looking forward to supporting Tom Corrick as he leads the company in continuing the focus on operating excellence, organic and strategic growth.

Business outlook

Boise Cascade expected to achieve improved EBITDA in its Wood Products segment due to higher plywood products in the first quarter of 2015. The company expected to report similar EBITDA results for its BMD segment for the current quarter.

The company is expecting to continue to experience modest demand growth for its products this year. Boise Cascade is anticipating that the construction activity will remain below 20-year average historical levels. The company expects the pricing of future commodity products to be volatile.