Plum Creek Timber
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Plum Creek Timber beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped, and GAAP earnings per share contracted.
Gross margins improved, operating margins contracted, net margins expanded.
Plum Creek Timber booked revenue of $315.0 million. The six analysts polled by S&P Capital IQ predicted revenue of $305.3 million. Sales were 12% lower than the prior-year quarter's $356.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.38. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.39 per share on the same basis. GAAP EPS of $0.38 for Q4 were 5.6% higher than the prior-year quarter's $0.36 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 35.6%, 160 basis points better than the prior-year quarter. Operating margin was 26.3%, 70 basis points worse than the prior-year quarter. Net margin was 19.4%, 280 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $279.1 million. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $1.22 billion. The average EPS estimate is $1.35.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 740 members out of 787 rating the stock outperform, and 47 members rating it underperform. Among 251 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 238 give Plum Creek Timber a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Plum Creek Timber is hold, with an average price target of $39.38.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Plum Creek Timber. The Fool owns shares of and has created a covered strangle position on Plum Creek Timber.
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