UFP Industries (UFPI) To Report Earnings Tomorrow: Here Is What To Expect
4min read Investors, buckle up! UFP Industries (UFPI) is about to step into the earnings spotlight, and the stakes are high. Tomorrow’s Q1 2025 report could send this stock soaring—or sinking—depending on whether it meets or shatters lowered expectations. Let’s break down what you need to know.
The Numbers Are Nasty, But the Story Might Be Stronger
Analysts are painting a grim picture for UFP’s Q1 results. The consensus calls for an EPS of $1.56, a 20.4% dive from last year’s $1.96, while revenue is expected to drop 2.4% to $1.60 billion. Yikes! But here’s the kicker: these estimates have been slashed repeatedly, so the bar is set low. If UFP exceeds these lowered targets, it could spark a rally.
The stock is currently trading around $106.74, but the average analyst price target of $133.00 implies a 24.6% upside. That’s a significant reward for those willing to bet on a beat. However, the GuruFocus model is more cautious, projecting a 21.96% downside to $83.30. This is a stock with starkly divided opinions—so let’s dig deeper.
Ask Aime: How UFP Industries' earnings report tomorrow could impact its stock price?
Why the Downgrades? And Why Buy?
The near-term slump isn’t a surprise. UFP’s Q4 2024 results already missed EPS expectations by $0.04, though revenue beat forecasts. The housing market’s slowdown and supply chain headwinds have taken a toll. But here’s where the bull case lives: long-term bets.
UFP isn’t just sitting on its laurels. It recently acquired C&L Wood Products, Inc., boosting its capacity in specialty wood components. Plus, the company plans to invest $1 billion through 2028 in automation and capacity expansion. That’s a bold move to dominate in a sector ripe for consolidation and efficiency gains.
Ask Aime: Should I Invest in UFP Industries Stock Now?
Analysts Are Split, But History Favors a Pop
The analyst community is a mixed bag. Four firms rate UFPI as “Outperform,” while Zacks’ #4 “Sell” rank reflects concerns about short-term underperformance. Yet historically, UFPI has a 47% chance of positive one-day returns after earnings over five years—even if that’s dipped to 36% in recent years. The median one-day gain? A juicy 5.7%.
Investors, here’s the play: If UFP surprises to the upside, those capital investments and strategic moves could push shares toward that $133 target. But if it misses, the sell-off could test support near $85.
The Bottom Line: A High-Reward, High-Risk Call
UFPI is a long-term story in a tough near-term environment. With a P/E of 16.05 and projected 11.16% EPS growth to $7.87 next year, the valuation looks reasonable if the company can execute its growth plans. The $1 billion investment isn’t just a cost—it’s a bet on automation-driven efficiency that could pay off when the housing market rebounds.
Buy? Yes—if you’re willing to stomach volatility. The stock’s average upside target of 24.6% versus the GuruFocus downside suggests a trade worth making, especially if Q1 beats or matches lowered estimates.
But remember: Earnings are tomorrow. If they miss, don’t panic—this is a company building for the future. If they beat, it’s a green light to double down.
Stay hungry, stay focused, and keep your eyes on that $133 target!
Disclosure: This analysis is for informational purposes only. Always consult with a financial advisor before making investment decisions.
