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Mar 31, 2021
Boise Cascade Q1 2021 Earnings Report
Reported strong first quarter results driven by robust construction activity and higher commodity wood products pricing.
Key Takeaways
Boise Cascade reported a significant increase in net income and sales for the first quarter of 2021 compared to the same period in 2020. Net income reached $149.2 million, or $3.76 per share, on sales of $1.8 billion, driven by strong demand and higher commodity prices.
First quarter net income was $149.2 million, or $3.76 per share.
Sales for the first quarter reached $1.8 billion, a 56% increase from the prior year.
Wood Products sales increased 35% driven by higher plywood and lumber prices, as well as higher sales volumes for I-joists.
Building Materials Distribution sales increased 56% due to sales volume and sales price increases.
Forward Guidance
The company expects a favorable demand environment for new residential construction to continue in 2021 and into next year. Repair and remodel spending may also remain elevated. Supply side constraints and COVID-19 impacts may continue to affect operations.
Positive Outlook
- Low mortgage rates are expected to continue.
- Work-from-home practices are expected to continue, driving housing demand.
- U.S. demographics support a higher level of forecasted housing starts.
- Many national home builders are reporting strong near-term backlogs.
- Repair and remodel spending may remain elevated as homeowners invest in existing homes.
Challenges Ahead
- There continues to be a heightened level of economic uncertainty due to the pandemic.
- Supply induced constraints on residential construction and repair-and-remodeling activity may continue to extend build times and limit activity.
- COVID-19 related short-term disruptions at BMD locations.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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