Universal Forest Products Beats Expectations but Takes a Step Back Anyway
Universal Forest Products (NAS: UFPI) reported earnings on Feb. 15. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Universal Forest Products beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share.
Gross margins dropped, operating margin improved, and net margin contracted.
Universal Forest Products booked revenue of $422.0 million. The four analysts polled by S&P Capital IQ hoped for revenue of $375.9 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $378.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.00. The four earnings estimates compiled by S&P Capital IQ anticipated -$0.05 per share on the same basis. GAAP EPS were -$0.09 for Q4 against $0.00 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 11.2%, 100 basis points worse than the prior-year quarter. Operating margin was 0.4%, 90 basis points better than the prior-year quarter. Net margin was -0.4%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $407.5 million. On the bottom line, the average EPS estimate is $0.03.
Next year's average estimate for revenue is $1.95 billion. The average EPS estimate is $1.34.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 83 members out of 106 rating the stock outperform, and 23 members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give Universal Forest Products a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Universal Forest Products is hold, with an average price target of $31.00.
Over the decades, small-cap stocks like Universal Forest Products have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Universal Forest Products to My Watchlist.
At the time this article 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. The Motley Fool owns shares of Universal Forest Products. 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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.