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Yahoo
16-05-2025
- Business
- Yahoo
Bear of the Day: Boise Cascade (BCC)
Boise Cascade BCC is one of the top North American producers of engineered wood products and plywood. BCC stock has tanked over 20% in 2025, driven by macroeconomic challenges, industry-specific headwinds, and operational pressures. The engineered wood products powerhouse missed our Q1 2025 earnings estimate by 22% on May 5. It also offered disappointing guidance as part of Boise Cascade's extended trend of downward EPS revisions. Boise Cascade is a leading producer of engineered wood products (EWP) and plywood. The company is also a huge player in the wholesale distribution of building products in the U.S. BCC posted an impressive stretch of top-line expansion between 2012 and 2022, highlighted by 18% growth in 2020 and 45% in 2021, driven by the Covid-driven housing and home improvement boom. Boise Cascade followed that up with another 6% sales growth in 2022, before tumbling against a tough to compete against stretch and a slowing housing market. Image Source: Zacks Investment Research The company's sales fell 19% in 2023 and 2% in 2024, while its earnings tanked roughly 40% and 20%, respectively. Most recently, Boise Cascade adjusted earnings dropped 59% YoY in the first quarter to $1.06 a share, missing our estimate by 22%. CEO Nate Jorgensen pointed to 'constrained demand, difficult weather, and planned downtime at our Oakdale veneer and plywood mill' as part of its rough quarter and downbeat outlook. Boise Cascade's consensus 2025 earnings estimate has dropped 18% since its Q1 report. Its 2026 estimate has slipped 13% since then, and its overall negative earnings revisions earn it a Zacks Rank #5 (Strong Sell). The company's earnings are projected to fall another 31% YoY in 2025 on 2% lower sales. Boise Cascade is prepared to benefit from long-term demographic trends and the ongoing undersupply of single-family homes that have kept housing demand high. The company also pays dividends and has a sturdy balance sheet. Investors might want to put Boise Cascade on their watchlists since it could be a longer-term winner. Unfortunately, BCC faces near-term headwinds driven by weak housing market demand, economic uncertainty, and more. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boise Cascade, L.L.C. (BCC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-04-2025
- Business
- Yahoo
JPMorgan, Wells Fargo, Bank of America and Morgan Stanely are part of Zacks Earnings Preview
Chicago, IL – April 7, 2025 – releases the list of companies likely to issue earnings surprises. This week's list includes JPMorgan JPM, Wells Fargo WFC, Bank of America BAC and Morgan Stanely MS. If you didn't know how banks made money, you would be justified in assuming that their business must be really exposed to tariffs. That will be a logical interpretation of bank stock performance in the ongoing tariff-induced market turmoil. Big banks like JPMorgan, Wells Fargo, Bank of America and Morgan Stanely relative to the S&P 500 index since February 19th. Two of these three banks are on deck to kick off the 2025 Q1 reporting cycle for the Finance sector by reporting their results before the market's open on Friday, April 11th. We all know that the banking business isn't subject to tariffs. But as cyclical operators, their business is heavily exposed to trends in the broader economy, which in turn is seen as weighed down by the ongoing tariffs uncertainty. There is no denying that risks to the broader economic outlook have increased, with many economists raising their recession odds and lowering their GDP growth expectations. Simply looking at the chart above, which shows the performance of these bank stocks since February 19th, makes it clear that market participants see the going getting more challenging for these banks. We intuitively understand this as the demand for credit decreases in a softening economic environment. At the same time, the quality of the bank's assets suffers, as a portion of its existing borrowers are unable to pay back their loans. Monthly loan volume data from the Federal Reserve has been showing a modest acceleration in loan demand in the first three months of the year, with commercial and industrial (C&I) loans and home-equity loans modestly up. The overriding issue for bank stock investors, however, is whether these trends can be sustained in the current macroeconomic environment. The stock market performance of these bank stocks suggests that they aren't hopeful on that count. With respect to credit quality, the problems in the commercial real estate (CRE) market are well-known and already adequately provisioned for at the major banks. Beyond CRE, aggregate bankruptcies in the U.S. have risen significantly from the Covid-driven low of early 2022, but the growth rate has been leveling off in recent months. We see this trend in early-stage credit card delinquencies as well, with the flat year-over-year growth rates in recent months indicative of favorable developments with respect to net charge-off rates this year. As with loan demand, the key question on the credit quality front will be expectations for the coming periods in a macroeconomic backdrop that is at best showing moderating growth, if not an altogether recessionary downturn. The outlook for the investment banking business is likely the biggest victim of the deterioration in market sentiment. This is notable, as management teams have consistently flagged the steady expansion in deal pipelines in recent quarters. At the start of the year, many in the market had been expecting to see signs of the hoped-for rebound in these Q1 results, but that has now been delayed, at least while the tariffs issue is front and center for the market. JPMorgan is expected to report $4.60 per share in earnings (down -0.7% year-over-year) on $43.01 billion in revenues (up +2.6% YoY). The stock was up nicely on the last earnings release on January 15th, reflecting positive commentary about the outlook. Estimates have been steadily going up, with the current $4.60 per share estimate up from $4.54 a month ago and $4.25 three months back. Wells Fargo is expected to report EPS of $1.23 (down -2.4% year-over-year) on $20.8 billion in revenues (down -0.3% YOY). Estimates for Q1 have largely been stable since the quarter got underway, with the current $1.23 estimate down from $1.24 a month back but up from $1.19 per share three months back. Wells Fargo were shares up following the last quarterly release on January 15th. For Morgan Stanely, the expectation is of $2.32 per share in earnings (up +14.9% YOY) on $16.8 billion in revenues (up +11.2%). The revisions trend has been positive, with analysts nudging their estimates higher since the quarter got underway. As with JPMorgan and Wells Fargo, Morgan Stanley shares were also up following the last quarterly release. The Zacks Major Banks industry, of which JPMorgan and Wells Fargo are a part, is expected to earn +0.7% higher earnings in 2025 Q1 on +5.3% higher revenues. Please note that this industry brought in roughly 50% of the Zacks Finance sector's total earnings over the trailing four-quarter period. Q1 earnings for the Zacks Finance sector are expected to be up +1.8% from the same period last year on +2.8% higher revenues. Despite the big bank stocks' outperformance over the past year, they are still cheap on most conventional valuation metrics. Relative to the S&P 500 index, the Zacks Major Banks industry is currently trading at 61% of the S&P 500 forward 12-month P/E multiple. Over the last 10 years, the industry has traded as high as 78% of the index, as low as 52%, and median of 62%. The Q1 reporting cycle will really get going this week with the aforementioned bank results. But several companies with fiscal quarters ending in February have been reporting results in recent weeks. Thus far, we have seen such February-quarter results from 19 S&P 500 members. All of these February-quarter results are combined with our March-quarter results. Total earnings for these 19 index members are up +9.4% from the same period last year on +5.7% revenue gains, with 57.9% of the companies beating EPS estimates and 68.4% beating revenue estimates. As you can see here, these early companies appear to be struggling to beat consensus estimates, with the EPS beats percentage for this group of companies the lowest in the preceding 20-quarter period. This is disconcerting, but we want to caution against reading too much into these early results, given the sample size. The expectation is that Q1 earnings will be up +6% from the same period last year on +3.7% higher revenues, which would follow the +14.1% earnings growth on +5.7% revenue gains in the preceding period. We have been experiencing a relatively high magnitude of negative revisions to estimates for the current period (2025 Q1), even before the more recent signs of weakness in data that drove the recent run of soft guidance from several companies. As noted earlier, these are more negative revisions to Q1 estimates since the start of January compared to the comparable periods of the preceding few quarters. Not only is the magnitude of negative revisions to Q1 estimates more pronounced relative to the last few quarters, but it is also more widespread. Since the start of the period in January, estimates have come down for 13 of the 16 Zacks sectors, with the biggest declines for the Conglomerates, Autos, Basic Materials, Aerospace, Consumer Discretionary, and others. The three sectors whose Q1 estimates have moved up since the quarter got underway are Medical, Utilities, and Construction. The Tech sector, whose estimates have consistently been positive over the past year, is also suffering negative revisions to Q1 estimates. Optimism about the AI investment cycle suffered a psychological blow following China's DeepSeek announcement. The resulting shift in market sentiment has been weighing on the space ever since, contributing to the underperformance of AI-focused stocks this year. Tariff headwinds add to the sector's worries, as a large portion of Tech hardware is manufactured in Asia. The sector still remains a key growth driver in Q1 and beyond, with 2025 Q1 earnings for the Tech sector expected to be up +12.6% on +10.2% higher revenues. A lot will be riding on the evolving earnings expectations for the Tech sector, which has been a pillar of growth over the last two years. The recent run of underwhelming guidance releases are coming at a time of growing anxiety about the macroeconomic backdrop, with many in the market starting to worry about the U.S. economy's near-term growth momentum. Uncertainty about the Trump administration's tariff policies is starting to appear in business and consumer confidence measures, and some have begun to worry that the ongoing public sector job cuts will eventually spill over into the private sector as well. Depending on where the emerging tariff regime settles, earnings estimates will need to come down in response. The ongoing market weakness is essentially a reflection of this diminished earnings expectations. For more details about the evolving earnings picture, please check out our weekly Earnings Trends report here >>>>Looking Ahead to the Q1 Earnings Season Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. Past performance is no guarantee of future results. Inherent in any investment is the potential for material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Wells Fargo & Company (WFC) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Morgan Stanley (MS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
10-03-2025
- Business
- Yahoo
State of Los Angeles Denim Manufacturing
'Made in the USA' is a rallying cry that has grown ever louder since the Covid-19 pandemic ground global supply chains to a halt, cutting off American brands from their offshore partners. Over the ensuing years, challenges persisted, with production slowdowns and logistical hiccups prompting U.S. brands to reexamine the sourcing status quo—and revisit the idea of manufacturing stateside. The concept is far from new for many denim and apparel labels who have long viewed the U.S., and Los Angeles in particular, as home base. Downtown, L.A. and the communities that surround it are home to thousands of mills, dyehouses and garment factories responsible for 83 percent of the country's apparel production. More from Sourcing Journal Asta Resort Dips Into Denim SoCal Law Enforcement Busts Massive Organized Retail Theft Operation C&A Closes German Jean Factory But even with buzzwords like 'onshoring' on the tongues of many, the reality on the ground reflects a much more nuanced state of affairs for manufacturers. Elvia Anaya, administrative specialist at Omni Laundry, told Rivet that the upsides of producing in L.A. are readily apparent. 'The benefit to doing business in L.A. is the turnaround time,' she said, 'and the creativity level is one-of-a-kind. We have had many customers come to us and are amazed to see their ideas come alive.' Still, the six-year-old laundry's business has decreased in recent years, and that unfortunate trend is continuing into 2024. According to Anaya, while brands are still interested in making denim in L.A., other apparel sourcing hubs, like Italy, are pulling market share away from SoCal makers. Today, Omni provides a variety of services, from wet processing to dry processing like hand-sanding and whiskering, as well as several dye techniques. While it used to offer novelty washes, like tie-dye, those techniques have fallen by the wayside as brands streamline their offerings. 'For overdyes we are processing 60 percent direct dyes and 40 percent reactive dyes,' Anaya said. She noted that 'direct dye takes an additional discharge process to lighten certain areas and seems very popular these days and keeps us busy.' Omni also operates a small development sewing line for sampling and limited-production runs. The ebb and flow of demand is being felt across the sector with inflation lingering and consumer confidence on a tentative upswing. But Pakistan-based Artistic Milliners' L.A. wash and finishing facility, Star Fades International (SFI), is in a period of flow, according to Katie Tague, vice president of global marketing and sales. 'Since the initial Covid-driven nearshoring rush, SFI has observed a shift in the denim manufacturing landscape in Los Angeles. With the increasing demand for local production and the focus on sustainability, there has been a resurgence of interest in Made in the USA denim,' she told Rivet. 'Brands are recognizing the value of sourcing locally and supporting domestic manufacturing, leading to a steady increase in business for SFI.' According to Tague, what sets the business apart is its 'comprehensive range of services, from design assistance to global sourcing solutions.' Recent projects with brands have centered on developing innovative denim that prioritizes sustainability and ethical production—fitting, with California leading the charge for green manufacturing. 'The team at SFI is dedicated to helping clients navigate the ever-changing denim industry landscape and create products that resonate with consumers,' she said. SFI's Karachi-based parent company, which counts itself among the largest denim manufacturers in Pakistan, has pioneered ecologically focused vertical production practices and relies on clean energy. There's a synergy between that longstanding vision and the demands of the American consumer, making SFI's L.A. business an essential proving ground for the firm's innovations. 'In the domestic market, there is a growing emphasis on sustainable and ethically sourced denim products. Consumers are increasingly conscious of the environmental and social impact of their clothing choices, driving brands to adopt more sustainable practices,' Tague explained. 'This trend is more pronounced in the U.S. compared to the global market, where there is a growing demand for transparency and accountability in the fashion industry.' Acquired in 2021, SFI is a newer venture for Artistic Milliners, and Tague said the company has 'learned valuable lessons about doing business in the U.S./L.A. market compared to abroad.' The benefits of having an American outpost include proximity to brands, access to diverse talent, and the ability to respond swiftly to client needs. 'Being in L.A. also provides an opportunity to tap into the local creativity and fashion scene, fostering collaborations and innovation,' she added. There are drawbacks, too—and they're not insubstantial. Operating costs are higher. Competition is stiffer. Regulatory requirements are stringent, and only becoming more complex as the state looks to implement new regulations pertaining to fashion's impact on the environment. 'Despite these challenges, Artistic Milliners has found that the benefits of being in the U.S. market outweigh the drawbacks, as it allows for closer partnerships with clients, more efficient communication, and a deeper understanding of local market trends and preferences,' Tague said. Beyond denim, L.A.-based apparel producers report having experienced a lift in business since talk about nearshoring became mainstream. TEG, a full-service garment manufacturer and developer based in Downtown, L.A.'s Arts District, offers both established and emerging brands help with patternmaking, sampling and cut and sew at a vertically integrated facility. 'Next year, 2025, will be TEG's 20th year in business. I can say we have seen a steady demand for Made in L.A. production since we started,' Jennifer Evans, founder and CEO of TEG and parent company The Evans Group, said. 'There was a spike during and after Covid, which has leveled off, but we still have requests each day for domestic production'—especially true for emerging brands looking for small-batch manufacturing, which is the company's primary focus, she added. TEG's business has grown 'significantly' in the years after the pandemic, amplifying its reach. 'We expanded our services to provide a complete one-stop-shop, from design to photoshoots, and have thrived since,' Evans said. According to the founder, the manufacturer has developed a niche with both new and established high-end designers, having worked with labels like Jonathan Simkhai and Rodarte in the past. 'We work on a wide variety of collections within those categories and tailor our services to suit each,' she said. 'We offer a more white-gloved experience to emerging designers, who need more hand-holding throughout the process, and high quality a la carte services for established brands looking for quick, quality work.' Amid a heightened focus on sustainability, the group has also seen more interest in specialty projects that promote circularity. 'We have seen an uptick in reuse projects, for both emerging and established brands, which aligns with our ethos and services well,' Evans said. For example, earlier this year, the manufacturer worked with Los Angeles streetwear retailer Bodega and Nike's Re-Creation program to release a collection of one-of-a-kind, reimagined products made from reclaimed Nike goods. The assortment featured apparel, accessories and footwear made from upcycled, archival and deadstock materials. 'These projects take significant time and handling to orchestrate, but allow for unique, forward designs, which we see large demand for domestically,' Evans said. Such collections illustrate the unique and tough-to-replicate advantages of manufacturing in the City of Angels. Small brands and designers can bring inventive, experimental projects to life without the pressure of high MOQs. 'Doing work in L.A. allows access to a highly skilled labor pool, easy and direct communications, flexibility in services, and clear business practices,' she added. 'For small brands, these are invaluable benefits while they learn the nuances of the process and their businesses.' This article is published in Rivet's Fall 2024 issue. Click here to read more.
The National
13-02-2025
- Business
- The National
Emaar Properties 2024 profit jumps 16% amid UAE's real estate boom
Dubai's largest listed developer Emaar Properties' 2024 net income surged 16 per cent on an annual basis as the company's revenue last year surged to record levels on a sharp rise in the property sales across its portfolio. Net profit attributable to owners of the company for the 12 months to the end of December rose to Dh13.5 billion ($3.67 billion), the company said on Thursday to the Dubai Financial Market, where its shares are traded. Revenue during the period increased 33 per cent annually to Dh35.5 billion, its highest ever, as property sales surged to a record Dh70 billion, up 72 per cent compared with the same period in 2023. The group's revenue backlog from property sales surpassed Dh110 billion as of December 31, marking a 55 per cent increase from 2023, indicating robust revenue growth for the coming years, according to Emaar. 'The company's progress also reflects the emirate's proactive economic strategies and its dedication to positioning Dubai as a global hub for innovation and investment,' Mohamed Alabbar, founder of Emaar, said. Property companies in the emirate have maintained a strong growth momentum since bouncing back from the Covid-driven slowdown amid continued economic momentum in the emirate. Dubai's economy grew by 3.1 per cent in the first nine months of last year, compared with the same period in 2023, reaching Dh339.4 billion, with growth largely driven by strides in several sectors including the real estate sector. Last year, Dubai recorded real estate deals worth Dh761 billion, up 20 per cent compared to 2023, with the total number of transactions for the year increasing by 36 per cent to reach 226,000, according to the latest data provided by Dubai Media Office. The UAE government initiatives such as residency permits for retired and remote workers and expansion of the 10-year golden visa programme as part of efforts to boost its appeal to international investors continued to support the property market. Emaar Development, a majority-owned subsidiary specialising in the build-to-sell property development business, recorded property sales worth Dh65.4 billion during the one-year period, up 75 per cent compared with 2023. Its revenue grew 61 per cent to reach Dh19.1 billion. It also launched 62 new projects across all master plans in the UAE. Emaar's shopping malls, retail, and commercial leasing operations recorded revenue of Dh5.6 billion, driven by robust growth in tenant sales, which saw an increase of more than 7 per cent compared with 2023 and increased occupancy. Its mall assets achieved an average occupancy of 98.5 per cent as of December 31, with Dubai Mall recording a footfall of 111 million during the year, up 6 per cent over 2023. Emaar's international real estate operations recorded property sales of Dh4.1 billion, an increase of 40 per cent compared with 2023, primarily driven by Egypt and India operations, with the revenue at Dh2.7 billion.
