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The Gory Details on USG's Double Fumble

By Seth Jayson - Updated Apr 10, 2017 at 1:44PM

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Just the facts, Fool.

USG (NYSE: USG) reported earnings on April 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), USG missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue was unchanged. GAAP earnings per share increased.

Margins expanded across the board.

Revenue details
USG booked revenue of $814.0 million. The 14 analysts polled by S&P Capital IQ expected to see sales of $862.2 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.02. The 15 earnings estimates compiled by S&P Capital IQ averaged $0.09 per share. GAAP EPS were $0.02 for Q1 against -$0.26 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 15.2%, 170 basis points better than the prior-year quarter. Operating margin was 6.3%, 270 basis points better than the prior-year quarter. Net margin was 0.2%, 350 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $891.6 million. On the bottom line, the average EPS estimate is $0.20.

Next year's average estimate for revenue is $3.58 billion. The average EPS estimate is $0.67.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,709 members out of 1,851 rating the stock outperform, and 142 members rating it underperform. Among 500 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 470 give USG a green thumbs-up, and 30 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 $31.00.

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