Resolute Forest Products Beats Expectations But Takes A Step Back Anyway

Resolute Forest Products (NYSE: RFP  ) reported earnings on Feb. 12. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Resolute Forest Products missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank slightly and GAAP loss per share increased.

Margins contracted across the board.

Revenue details
Resolute Forest Products logged revenue of $1.13 billion. The one analyst polled by S&P Capital IQ wanted to see a top line of $1.16 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 $0.35. The five earnings estimates compiled by S&P Capital IQ anticipated $0.21 per share. GAAP EPS were -$0.38 for Q4 compared to -$0.06 per share for the prior-year quarter.

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 22.3%, 250 basis points worse than the prior-year quarter. Operating margin was -4.7%, 1,050 basis points worse than the prior-year quarter. Net margin was -3.2%, 270 basis points worse than the prior-year quarter.

Looking ahead
On the bottom line, the average EPS estimate is $0.13.

Next year's average estimate for revenue is $4.66 billion. The average EPS estimate is $0.71.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 91 members out of 133 rating the stock outperform, and 42 members rating it underperform. Among 32 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give Resolute Forest Products a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Resolute Forest Products is underperform, with an average price target of $13.21.

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