Why Universal Forest Products Shares Popped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Universal Forest Products jumped as much as 10% today after reporting earnings.
So what: Revenue rose 24% to $738.4 million and was well ahead of the $714.8 million analysts expected. Earnings per share fell 10% from a year ago, but at $0.79 was still $0.12 ahead of expectations.
Now what: Each of the company's five segments delivered double-digit growth, driven by the housing recovery. Management was also able to handle falling lumber prices by increasing volume. The stock still trades at a hefty 16 times forward earnings, but if this growth continues across the board, and the housing market improves, it could end up being a steal in the long term.
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The article Why Universal Forest Products Shares Popped originally appeared on Fool.com.
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