Boise Cascade Company (NYSE: BCC) saw its stock surge 7.66% in pre-market trading on November 6, 2024, following the release of its third-quarter 2024 earnings report. The company's consolidated sales for the quarter stood at $1.7 billion, a 7% decrease from the same period in 2023, reflecting challenges in the housing market.

Despite the decline in sales, Boise Cascade demonstrated resilience and continued to execute its strategic initiatives. The company reported positive factors that may have contributed to the stock's pre-market surge:

- Effective capital deployment through $220 million in dividends and $165 million in share repurchases year-to-date, underscoring its commitment to shareholder returns.

- Strong market position backed by its two-step distribution model, which is crucial for delivering nationwide service across leading brands.

- Positive impact from the BROSCO acquisition, contributing to a 4% increase in general line product sales in the Building Materials Distribution (BMD) segment.

- Preparedness for upcoming modernization projects, ensuring minimal disruption to inventory availability for customers.

However, Boise Cascade also faced several challenges during the quarter:

- Net income decreased significantly to $91 million, compared to $143.1 million in the prior year quarter, indicating pressure on profitability.

- Wood product sales declined by 12% year-over-year, with segment EBITDA dropping due to lower sales prices and higher conversion costs.

- The BMD segment experienced a 6% decline in sales, with gross margin dollars decreasing by $7.7 million compared to the previous year.

- The company anticipates seasonally lower volumes and potential price erosion in the fourth quarter, which could further impact financial performance.