UFP Applied sciences (UFPT) got here out with quarterly earnings of $0.40 per share, beating the Za
UFP Applied sciences (UFPT) got here out with quarterly earnings of $0.40 per share, beating the Zacks Consensus Estimate of $0.32 per share. This compares to earnings of $0.75 per share a 12 months in the past. These figures are adjusted for non-recurring gadgets.
This quarterly report represents an earnings shock of 25%. 1 / 4 in the past, it was anticipated that this packaging firm and element producer would publish earnings of $0.20 per share when it truly produced earnings of $0.31, delivering a shock of 55%.
During the last 4 quarters, the corporate has surpassed consensus EPS estimates thrice.
UFP, which belongs to the Zacks Containers – Paper and Packaging business, posted revenues of $43.30 million for the quarter ended September 2020, lacking the Zacks Consensus Estimate by 3.78%. This compares to year-ago revenues of $49.39 million. The corporate has not been in a position to beat consensus income estimates over the past 4 quarters.
The sustainability of the inventory’s quick value motion based mostly on the recently-released numbers and future earnings expectations will largely rely upon administration’s commentary on the earnings name.
UFP shares have misplaced about 25.4% because the starting of the 12 months versus the S&P 500’s acquire of two.5%.
What’s Subsequent for UFP?
Whereas UFP has underperformed the market to this point this 12 months, the query that involves buyers’ minds is: what’s subsequent for the inventory?
There aren’t any straightforward solutions to this key query, however one dependable measure that may assist buyers tackle that is the corporate’s earnings outlook. Not solely does this embody present consensus earnings expectations for the approaching quarter(s), but in addition how these expectations have modified recently.
Empirical analysis reveals a robust correlation between near-term inventory actions and tendencies in earnings estimate revisions. Buyers can monitor such revisions by themselves or depend on a tried-and-tested score software just like the Zacks Rank, which has a formidable monitor report of harnessing the facility of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions pattern for UFP was blended. Whereas the magnitude and path of estimate revisions may change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #3 (Maintain) for the inventory. So, the shares are anticipated to carry out in step with the market within the close to future. You possibly can see the entire listing of at present’s Zacks #1 Rank (Robust Purchase) shares right here.
It will likely be attention-grabbing to see how estimates for the approaching quarters and present fiscal 12 months change within the days forward. The present consensus EPS estimate is $0.51 on $48.20 million in revenues for the approaching quarter and $1.64 on $184.12 million in revenues for the present fiscal 12 months.
Buyers ought to be aware of the truth that the outlook for the business can have a cloth influence on the efficiency of the inventory as properly. When it comes to the Zacks Trade Rank, Containers – Paper and Packaging is at the moment within the prime 50% of the 250 plus Zacks industries. Our analysis reveals that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
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UFP Applied sciences, Inc. (UFPT): Free Inventory Evaluation Report
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