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.
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 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.
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.)
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.
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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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.