Resolute Forest Products
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Resolute Forest Products beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share expanded.
Gross margins dropped, operating margins shrank, net margins grew.
Revenue details
Resolute Forest Products reported revenue of $1.15 billion. The one analyst polled by S&P Capital IQ expected sales of $1.12 billion on the same basis. GAAP reported sales were 5.8% lower than the prior-year quarter's $1.22 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 $0.07. The five earnings estimates compiled by S&P Capital IQ predicted $0.22 per share. GAAP EPS were $0.32 for Q3 versus -$0.46 per share for the prior-year quarter.
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 22.4%, 460 basis points worse than the prior-year quarter. Operating margin was 1.9%, 590 basis points worse than the prior-year quarter. Net margin was 2.7%, 630 basis points better than the prior-year quarter.
Looking ahead
On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $4.58 billion. The average EPS estimate is $0.74.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 90 members out of 133 rating the stock outperform, and 43 members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give Resolute Forest Products a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Resolute Forest Products is hold, with an average price target of $13.85.
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