Resolute Forest Products
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Resolute Forest Products missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share shrank to a loss.
Gross margins dropped, operating margins grew, net margins shrank.
Resolute Forest Products chalked up revenue of $1.15 billion. The one analyst polled by S&P Capital IQ predicted revenue of $1.21 billion on the same basis. GAAP reported sales were 9.8% lower than the prior-year quarter's $1.27 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.46. The three earnings estimates compiled by S&P Capital IQ averaged $0.58 per share on the same basis. GAAP EPS were -$0.06 for Q4 compared to $20.65 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.7%, 180 basis points worse than the prior-year quarter. Operating margin was 4.1%, 130 basis points better than the prior-year quarter. Net margin was -0.5%, 33,380 basis points worse than the prior-year quarter.
On the bottom line, the average EPS estimate is $0.03.
Next year's average estimate for revenue is $4.76 billion. The average EPS estimate is $1.26.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Resolute Forest Products is outperform, with an average price target of $17.69.
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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. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.