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.
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