The 10-second takeaway
For the quarter ended June 30 (Q2), USG beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share increased. GAAP earnings per share grew.
Margins grew across the board.
USG notched revenue of $916.0 million. The 15 analysts polled by S&P Capital IQ foresaw revenue of $881.2 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $798.0 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 $0.23. The 16 earnings estimates compiled by S&P Capital IQ anticipated $0.19 per share. Non-GAAP EPS were $0.23 for Q2 against -$0.15 per share for the prior-year quarter. GAAP EPS were $0.22 for Q2 versus -$0.54 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 16.5%, 370 basis points better than the prior-year quarter. Operating margin was 8.2%, 470 basis points better than the prior-year quarter. Net margin was 2.7%, 980 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $931.8 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $3.56 billion. The average EPS estimate is $0.65.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,708 members out of 1,848 rating the stock outperform, and 140 members rating it underperform. Among 492 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 463 give USG a green thumbs-up, and 29 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 $30.92.
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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.