Let’s dig into the relative performance of Boise Cascade (NYSE: BCC) and its peers as we unravel the now-completed Q4 industrial distributors earnings season.
Supply chain and inventory management are themes that grew in focus after COVID wreaked havoc on the global movement of raw materials and components. Distributors that boast a reliable selection of products–everything from hardhats and fasteners for jet engines to ceiling systems–and quickly deliver goods to customers can benefit from this theme. While e-commerce hasn’t disrupted industrial distribution as much as consumer retail, it is still a real threat, forcing investment in omnichannel capabilities to better interact with customers. Additionally, distributors are at the whim of economic cycles that impact the capital spending and construction projects that can juice demand.
The 28 industrial distributors stocks we track reported a mixed Q4. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 16.6% since the latest earnings results.
Boise Cascade (NYSE: BCC)
Formed through the merger of two lumber companies, Boise Cascade Company (NYSE: BCC) manufactures and distributes wood products and other building materials.
Boise Cascade reported revenues of $1.57 billion, down 4.7% year on year. This print fell short of analysts’ expectations by 0.7%. Overall, it was a mixed quarter for the company with a decent beat of analysts’ adjusted operating income estimates but a miss of analysts’ Wood products revenue estimates.
The stock is down 22.1% since reporting and currently trades at $90.61.
Is now the time to buy Boise Cascade? Access our full analysis of the earnings results here, it’s free.
Best Q4: DistributionNOW (NYSE: DNOW)
Spun off from National Oilwell Varco, DistributionNOW (NYSE: DNOW) provides distribution and supply chain solutions for the energy and industrial end markets.
DistributionNOW reported revenues of $571 million, up 2.9% year on year, outperforming analysts’ expectations by 3.4%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 14.7% since reporting. It currently trades at $16.21.
Is now the time to buy DistributionNOW? Access our full analysis of the earnings results here, it’s free.
Slowest Q4: MRC Global (NYSE: MRC)
Producing bomb casings and tracks for vehicles during WWII, MRC (NYSE: MRC) offers pipes, valves, and fitting products for various industries.
MRC Global reported revenues of $664 million, down 13.5% year on year, falling short of analysts’ expectations by 8.7%. It was a disappointing quarter as it posted a miss of analysts’ Fittings revenue estimates.
As expected, the stock is down 14.5% since the results and currently trades at $9.50.
Read our full analysis of MRC Global’s results here.
FTAI Aviation (NASDAQ: FTAI)
With a focus on the CFM56 engine that powers Boeing and Airbus’s planes, FTAI Aviation (NASDAQ: FTAI) sells, leases, maintains, and repairs aircraft engines.
FTAI Aviation reported revenues of $498.8 million, up 59.5% year on year. This print topped analysts’ expectations by 0.9%. More broadly, it was a satisfactory quarter as it also logged an impressive beat of analysts’ EBITDA estimates but a significant miss of analysts’ adjusted operating income estimates.
FTAI Aviation scored the fastest revenue growth among its peers. The stock is down 39.3% since reporting and currently trades at $85.07.
Read our full, actionable report on FTAI Aviation here, it’s free.
VSE Corporation (NASDAQ: VSEC)
With roots dating back to 1959 and a strategic focus on extending the life of transportation assets, VSE Corporation (NASDAQ: VSEC) provides aftermarket parts distribution and maintenance, repair, and overhaul services for aircraft and vehicle fleets in commercial and government markets.
VSE Corporation reported revenues of $299 million, up 27.1% year on year. This result surpassed analysts’ expectations by 1.8%. It was a stunning quarter as it also put up a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The stock is up 1.7% since reporting and currently trades at $102.75.
Read our full, actionable report on VSE Corporation here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
