The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Georgia Gulf whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share grew.
Margins grew across the board.
Georgia Gulf booked revenue of $813.5 million. The seven analysts polled by S&P Capital IQ foresaw a top line of $939.1 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $929.6 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 $1.38. The seven earnings estimates compiled by S&P Capital IQ anticipated $1.18 per share. GAAP EPS of $1.12 for Q3 were 13% higher than the prior-year quarter's $0.99 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 17.2%, 670 basis points better than the prior-year quarter. Operating margin was 10.7%, 480 basis points better than the prior-year quarter. Net margin was 4.8%, 110 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $768.9 million. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $3.44 billion. The average EPS estimate is $2.85.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 114 members out of 145 rating the stock outperform, and 31 members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 give Georgia Gulf 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 Georgia Gulf is outperform, with an average price target of $42.60.
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