The 10-second takeaway
For the quarter ended Dec. 31 (Q4), USG beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP loss per share shrank.
Margins grew across the board.
USG recorded revenue of $815.0 million. The 12 analysts polled by S&P Capital IQ predicted revenue of $786.1 million on the same basis. GAAP reported sales were 8.7% higher than the prior-year quarter's $750.0 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 -$0.51. The 13 earnings estimates compiled by S&P Capital IQ predicted -$0.26 per share. GAAP EPS were -$0.12 for Q4 against -$0.95 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 10.4%, 470 basis points better than the prior-year quarter. Operating margin was 0.6%, 550 basis points better than the prior-year quarter. Net margin was -1.6%, 1,170 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $873.2 million. On the bottom line, the average EPS estimate is $0.12.
Next year's average estimate for revenue is $3.56 billion. The average EPS estimate is $0.62.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,722 members out of 1,870 rating the stock outperform, and 148 members rating it underperform. Among 541 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 506 give USG a green thumbs-up, and 35 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on USG is outperform, with an average price target of $26.10.
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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 has no position in any of the stocks mentioned. 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.