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USG Beats Q4 Earnings Estimates, Raises Share Repurchase

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USG Corporation’s (USG - Free Report) fourth-quarter adjusted earnings per share of 53 cents beat the Zacks Consensus Estimate of 41 cents by 29.3%. Earnings reflect a solid 20.5% jump from the year-ago quarter’s 44 cents.

Revenue Discussion

Total revenues of $831 billion surpassed the Zacks Consensus Estimate of $757 million by 9.8%. Revenues increased 13.2% year over year.

The U.S. Wallboard & Surfaces segment reported sales of $499 million compared with $440 million in the prior-year quarter. Wallboard volumes in the United States increased approximately 14%, while wallboard price was down 4% year over year. Surfaces products drove $2 million of improved profitability in the U.S. Wallboard & Surfaces segment.

The U.S. Performance Materials segment reported revenues of $95 million, up 10.5% year over year. The U.S. Ceilings segment reported revenues of $122 million more than $102 million in the prior-year quarter.

Operating Highlights

Adjusted operating profit increased 10.4% to $106 million in the quarter from the fourth quarter of 2016.

Adjusted operating profit at the U.S. Wallboard & Surfaces segment rose by $8 million, while the same at the Performance Materials segment declined by $3 million and increased by $9 million at the Ceilings segment  from the fourth quarter of 2016.

USG Corporation Price, Consensus and EPS Surprise



2017 Highlights

Total revenues of $3.2 billion increased 6.7% year over year. Earnings per share of $1.80 in 2017 reflects an improvement over the year-ago quarter’s $1.70.


As of Dec 31, 2017, cash and cash equivalents were $394 million, down from $427 million at the end of 2016.

USG announced a $250-million hike in its share repurchase program, raising the total authorization to $500 million. As of Dec 31, 2017, $66 million remained under the previously authorized $250-million share buy-back program.

Zacks Rank

USG sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Peer Releases

PulteGroup’s (PHM - Free Report) fourth-quarter 2017 adjusted earnings of 85 cents per share beat the Zacks Consensus Estimate of 84 cents by 1.2%. Also, earnings reflect a 27% jump from the year-ago quarter’s 67 cents.

NVR, Inc. (NVR - Free Report) reported fourth-quarter 2017 adjusted earnings of $43.41 per share, missing the Zacks Consensus Estimate of $48.95 by 11.3%. Without the adjustment, NVR reported earnings of $28.88 per share, down 24% year over year.

Upcoming Release

Louisiana-Pacific (LPX - Free Report) is scheduled to release quarterly numbers on Feb 13. The consensus estimate for fourth-quarter earnings is pegged at 58 cents, reflecting an increase of 152.2% on a year-over-year basis.

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