Wrapping up Q1 earnings, we look at the numbers and key takeaways for the industrial distributors stocks, including Boise Cascade (NYSE:BCC) and its peers.
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 24 industrial distributors stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 1.2%. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and industrial distributors stocks have had a rough stretch, with share prices down 8.4% on average since the previous 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 $1.65 billion, up 6.5% year on year, topping analysts' expectations by 5.2%. It was a stunning quarter for the company, with an impressive beat of analysts' revenue estimates and a solid beat of analysts' earnings estimates.
The stock is down 16.9% since the results and currently trades at $115.83.
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Best Q1: Transcat (NASDAQ:TRNS) Serving the pharmaceutical, industrial manufacturing, energy, and chemical process industries, Transcat (NASDAQ:TRNS) provides measurement instruments and supplies.
Transcat reported revenues of $70.91 million, up 14.3% year on year, outperforming analysts' expectations by 3.4%. It was an incredible quarter for the company, with revenue and EPS exceeding analysts' estimates.
The stock is down 0.8% since the results and currently trades at $122.82.
Weakest Q1: Karat Packaging (NASDAQ:KRT) Founded as Lollicup, Karat Packaging (NASDAQ: KRT) distributes and manufactures environmentally-friendly disposable foodservice packaging solutions.
Karat Packaging reported revenues of $95.61 million, down 0.2% year on year, falling short of analysts' expectations by 4.2%. It was a weak quarter for the company, with revenue and EPS fall below analysts' estimates.
The stock is down 3.5% since the results and currently trades at $27.88.
MRC Global (NYSE:MRC) Originally founded in the 1920s as McJunkin Supply Company, MRC (NYSE:MRC) today offers pipes, valves, and fitting products for various industries.
MRC Global reported revenues of $806 million, down 8.9% year on year, surpassing analysts' expectations by 6%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates.
The stock is up 4.6% since the results and currently trades at $12.26.
Herc (NYSE:HRI) Formerly a subsidiary of Hertz (NASDAQ:HTZ) Corporation and with a logo that still bears some similarities to its former parent, Herc Holdings (NYSE:HRI) provides equipment rental and related services to a wide range of industries.
Herc reported revenues of $804 million, up 8.6% year on year, surpassing analysts' expectations by 2.4%. It was an exceptional quarter for the company, with an impressive beat of analysts' Equipment rentals revenue estimates and a decent beat of analysts' earnings estimates.
The stock is down 11.7% since the results and currently trades at $131.01.
This content was originally published on Stock Story
