USG Increases Sales but Misses Estimates on Earnings

USG (NYS: USG) reported earnings on Feb. 6. Here are the numbers you need to know.

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 improved and GAAP loss per share shrank.

Gross margins dropped, operating margins increased, and net margins improved.

Revenue details
USG recorded revenue of $750.0 million. The 12 analysts polled by S&P Capital IQ hoped for a top line of $726.7 million. Sales were 7.8% higher than the prior-year quarter's $696.0 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at -$0.90. The 14 earnings estimates compiled by S&P Capital IQ averaged -$0.74 per share on the same basis. GAAP EPS were -$0.95 for Q4 versus -$1.17 per share for the prior-year quarter.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 5.7%, 60 basis points worse than the prior-year quarter. Operating margin was -4.9%, 70 basis points better than the prior-year quarter. Net margin was -13.3%, 410 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $773.9 million. On the bottom line, the average EPS estimate is -$0.62.

Next year's average estimate for revenue is $3.20 billion. The average EPS estimate is -$1.98.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,728 members out of 1,874 rating the stock outperform, and 146 members rating it underperform. Among 545 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 509 give USG a green thumbs-up, and 36 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on USG is hold, with an average price target of $9.56.

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At the time thisarticle was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.

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