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Universal Forest Products Makes Analysts Look Bad

Thursday - 4/18/2013, 2:00am  ET

Universal Forest Products reported earnings on April 17. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Universal Forest Products met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share increased significantly.

Gross margins dropped, operating margins dropped, net margins were steady.

Revenue details
Universal Forest Products recorded revenue of $554.5 million. The two analysts polled by S&P Capital IQ expected to see revenue of $555.9 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $457.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.26. The two earnings estimates compiled by S&P Capital IQ forecast -$0.01 per share. GAAP EPS of $0.26 for Q1 were 24% higher than the prior-year quarter's $0.21 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 10.3%, 140 basis points worse than the prior-year quarter. Operating margin was 1.6%, 10 basis points worse than the prior-year quarter. Net margin was 0.9%, much about the same as the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $714.8 million. On the bottom line, the average EPS estimate is $0.71.

Next year's average estimate for revenue is $2.45 billion. The average EPS estimate is $1.36.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 77 members out of 98 rating the stock outperform, and 21 members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Universal Forest Products a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Universal Forest Products is outperform, with an average price target of $45.50.

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This article was originally published as Universal Forest Products Makes Analysts Look Badon Fool.com

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