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What: Shares of Universal Forest Products
So what: Net sales fell 1.5% to $387.2 million, far below analysts' estimates of $422 million. The company also reported a net loss of $3.7 million, or $0.19 per share, below estimates of a profit of $0.01.
Now what: The company still isn't supplying guidance, which tells me it really has no clue how the housing market will perform in the next year. With results so much worse than expected, analysts should be scrambling to lower projections, which will make the seemingly attractive current forward P/E ratio of 16 irrelevant. I don't see any buy signals today, so I'm going to sit this one out and wait for some more solid signs that business is turning around.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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