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.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.