Universal Forest Products
The 10-second takeaway
For the quarter ended March 31 (Q1), Universal Forest Products beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased.
Margins expanded across the board.
Universal Forest Products reported revenue of $457.1 million. The four analysts polled by S&P Capital IQ anticipated a top line of $421.2 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $387.2 million.
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 $0.21. The four earnings estimates compiled by S&P Capital IQ anticipated $0.03 per share. GAAP EPS were $0.21 for Q1 against -$0.19 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 11.7%, 100 basis points better than the prior-year quarter. Operating margin was 1.7%, 300 basis points better than the prior-year quarter. Net margin was 0.9%, 180 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $588.5 million. On the bottom line, the average EPS estimate is $0.62.
Next year's average estimate for revenue is $1.97 billion. The average EPS estimate is $1.09.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 85 members out of 108 rating the stock outperform, and 23 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Universal Forest Products a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Universal Forest Products is hold, with an average price target of $35.50.
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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 Universal Forest Products. 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.