The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Georgia Gulf whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly, and GAAP earnings per share shrank to a loss.
Margins contracted across the board.
Georgia Gulf booked revenue of $673.6 million. The five analysts polled by S&P Capital IQ wanted to see revenue of $758.6 million on the same basis. GAAP reported sales were 2.8% lower than the prior-year quarter's $692.8 million.
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 -$0.02. The six earnings estimates compiled by S&P Capital IQ predicted $0.12 per share on the same basis. GAAP EPS were -$0.09 for Q4 compared to $0.43 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 6.9%, 400 basis points worse than the prior-year quarter. Operating margin was 1.3%, 350 basis points worse than the prior-year quarter. Net margin was -0.5%, 270 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $814.2 million. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $3.50 billion. The average EPS estimate is $2.39.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 119 members rating the stock outperform and 31 members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Georgia Gulf a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Georgia Gulf is hold, with an average price target of $27.33.
Over the decades, small-cap stocks, like Georgia Gulf have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Georgia Gulf to My Watchlist.
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.