The 10-second takeaway
For the quarter ended June 30 (Q2), Owens Corning missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share grew. GAAP earnings per share grew significantly.
Margins grew across the board.
Owens Corning tallied revenue of $1.35 billion. The 13 analysts polled by S&P Capital IQ expected revenue of $1.44 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.57. The 16 earnings estimates compiled by S&P Capital IQ forecast $0.69 per share. Non-GAAP EPS of $0.57 for Q2 were 5.6% higher than the prior-year quarter's $0.54 per share. GAAP EPS of $0.41 for Q2 were 28% higher than the prior-year quarter's $0.32 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 19.8%, 50 basis points better than the prior-year quarter. Operating margin was 8.8%, 50 basis points better than the prior-year quarter. Net margin was 3.6%, 80 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.38 billion. On the bottom line, the average EPS estimate is $0.66.
Next year's average estimate for revenue is $5.43 billion. The average EPS estimate is $2.03.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 436 members out of 462 rating the stock outperform, and 26 members rating it underperform. Among 88 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 86 give Owens Corning a green thumbs-up, and two 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 $48.77.
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