The 10-second takeaway
For the quarter ended June 30 (Q2), USG missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP loss per share contracted.
Margins improved across the board.
USG booked revenue of $825.0 million. The 12 analysts polled by S&P Capital IQ hoped for net sales of $848.4 million on the same basis. GAAP reported sales were 8.4% higher than the prior-year quarter's $761.0 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 -$0.15. The 14 earnings estimates compiled by S&P Capital IQ predicted -$0.11 per share. GAAP EPS were -$0.54 for Q2 versus -$0.69 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 13.2%, 620 basis points better than the prior-year quarter. Operating margin was 3.8%, 630 basis points better than the prior-year quarter. Net margin was -6.9%, 230 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $877.9 million. On the bottom line, the average EPS estimate is -$0.04.
Next year's average estimate for revenue is $3.37 billion. The average EPS estimate is -$0.61.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,713 members out of 1,853 rating the stock outperform, and 140 members rating it underperform. Among 467 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 433 give USG a green thumbs-up, and 34 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on USG is hold, with an average price target of $19.80.
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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 the 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 don't 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.