Building materials manufacturer UFP Industries (NASDAQ:UFPI) will be announcing earnings results tomorrow after the bell. Here’s what you need to know.

UFP Industries missed analysts’ revenue expectations by 5.9% last quarter, reporting revenues of $1.65 billion, down 9.8% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ adjusted operating income estimates.

Is UFP Industries a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting UFP Industries’s revenue to decline 6.6% year on year to $1.42 billion, improving from the 20.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.24 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. UFP Industries has missed Wall Street’s revenue estimates six times over the last two years.

Looking at UFP Industries’s peers in the building materials segment, some have already reported their Q4 results, giving us a hint as to what we can expect. AZEK delivered year-on-year revenue growth of 18.7%, beating analysts’ expectations by 7.9%, and Sherwin-Williams reported flat revenue, in line with consensus estimates. AZEK traded up 2.5% following the results, while Sherwin-Williams’s stock price was unchanged.

Read our full analysis of AZEK’s results here and Sherwin-Williams’s results here.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the building materials stocks have shown solid performance, the group has generally underpeformed, with share prices down 4.6% on average over the last month. UFP Industries is down 1.6% during the same time and is heading into earnings with an average analyst price target of $135.50 (compared to the current share price of $116.35).

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