Owens Corning
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Owens Corning missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted significantly.
Margins contracted across the board.
Revenue details
Owens Corning logged revenue of $1.28 billion. The 10 analysts polled by S&P Capital IQ wanted to see revenue of $1.31 billion on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $1.45 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.33. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.35 per share. GAAP EPS of $0.37 for Q3 were 63% lower than the prior-year quarter's $1.01 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 15.8%, 610 basis points worse than the prior-year quarter. Operating margin was 4.6%, 750 basis points worse than the prior-year quarter. Net margin was 3.4%, 520 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $1.16 billion. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $5.20 billion. The average EPS estimate is $1.18.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 438 members out of 462 rating the stock outperform, and 24 members rating it underperform. Among 98 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 95 give Owens Corning a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Owens Corning is outperform, with an average price target of $37.14.
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