The 10-second takeaway
For the quarter ended March 31 (Q1), United Stationers beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
United Stationers reported revenue of $1.27 billion. The three analysts polled by S&P Capital IQ foresaw revenue of $1.24 billion on the same basis. GAAP reported sales were 2.8% higher than the prior-year quarter's $1.24 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 $0.45. The four earnings estimates compiled by S&P Capital IQ predicted $0.42 per share on the same basis. GAAP EPS of $0.36 for Q1 were 18% lower than the prior-year quarter's $0.44 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 14.2%, 50 basis points worse than the prior-year quarter. Operating margin was 2.5%, 80 basis points worse than the prior-year quarter. Net margin was 1.2%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.27 billion. On the bottom line, the average EPS estimate is $0.60.
Next year's average estimate for revenue is $5.11 billion. The average EPS estimate is $2.63.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 53 members out of 59 rating the stock outperform, and six members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 give United Stationers a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on United Stationers is outperform, with an average price target of $35.33.
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