Universal Forest Products
The 10-second takeaway
For the quarter ended June 30 (Q2), Universal Forest Products beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. GAAP earnings per share contracted.
Margins dropped across the board.
Universal Forest Products tallied revenue of $738.4 million. The one analyst polled by S&P Capital IQ looked for net sales of $714.8 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $593.7 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 $0.79. The two earnings estimates compiled by S&P Capital IQ averaged $0.67 per share. GAAP EPS of $0.79 for Q2 were 10% lower than the prior-year quarter's $0.88 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 10.9%, 120 basis points worse than the prior-year quarter. Operating margin was 3.7%, 10 basis points worse than the prior-year quarter. Net margin was 2.1%, 80 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $632.2 million. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $2.43 billion. The average EPS estimate is $1.53.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 79 members out of 101 rating the stock outperform, and 22 members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Universal Forest Products a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Universal Forest Products is buy, with an average price target of $46.00.
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