Wrapping up Q2 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 29 industrial distributors stocks we track reported a slower Q2. As a group, revenues were in line with analysts’ consensus estimates.

Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation, and while some industrial distributors stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.6% since the latest 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 $1.80 billion, flat year on year. This print exceeded analysts’ expectations by 1.5%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ operating margin estimates and a decent beat of analysts’ Building Material Distribution revenue estimates.

Interestingly, the stock is up 9.4% since reporting and currently trades at $135.86.

Is now the time to buy Boise Cascade? Access our full analysis of the earnings results here, it’s free.

Best Q2: Rush Enterprises (NASDAQ:RUSHA)

Headquartered in Texas, Rush Enterprises (NASDAQ:RUSH.A) provides truck-related services and solutions, including sales, leasing, parts, and maintenance for commercial vehicles.

Rush Enterprises reported revenues of $2.03 billion, up 1.2% year on year, outperforming analysts’ expectations by 8.8%. The business had an exceptional quarter with an impressive beat of analysts’ earnings estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $50.89.