Resolute Forest Products
The 10-second takeaway
For the quarter ended June 30 (Q2), Resolute Forest Products beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share dropped to a loss.
Gross margins improved, operating margins contracted, net margins contracted.
Resolute Forest Products booked revenue of $1.17 billion. The one analyst polled by S&P Capital IQ predicted sales of $1.09 billion on the same basis. GAAP reported sales were 2.7% lower than the prior-year quarter's $1.20 billion.
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 $0.30. The four earnings estimates compiled by S&P Capital IQ forecast $0.06 per share. GAAP EPS were -$0.20 for Q2 against $0.63 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 24.2%, 10 basis points better than the prior-year quarter. Operating margin was -3.2%, 780 basis points worse than the prior-year quarter. Net margin was -1.7%, 680 basis points worse than the prior-year quarter.
On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $4.65 billion. The average EPS estimate is $0.48.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 88 members out of 133 rating the stock outperform, and 45 members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give Resolute Forest Products a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Resolute Forest Products is hold, with an average price target of $12.89.
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