Buckeye Technologies Misses on the Top and Bottom Lines

Buckeye Technologies (NYSE: BKI  ) reported earnings on April 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q3), Buckeye Technologies missed estimates on revenues and earnings per share.

Compared with the prior-year quarter, revenue shrank and GAAP earnings per share shrank.

Gross margins increased, operating margins expanded, net margins shrank.

Revenue details
Buckeye Technologies chalked up revenue of $217.1 million. The four analysts polled by S&P Capital IQ expected sales of $227.1 million on the same basis. GAAP reported sales were 8.7% lower than the prior-year quarter's $237.8 million.

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

EPS details
Non-GAAP EPS came in at $0.67. The five earnings estimates compiled by S&P Capital IQ averaged $0.69 per share on the same basis. GAAP EPS of $0.64 for Q3 were 8.6% lower than the prior-year quarter's $0.70 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 24.3%, 10 basis points better than the prior-year quarter. Operating margin was 19.2%, 70 basis points better than the prior-year quarter. Net margin was 11.9%, 20 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $230.1 million. On the bottom line, the average EPS estimate is $0.76.

Next year's average estimate for revenue is $929.2 million. The average EPS estimate is $2.90.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 157 members out of 164 rating the stock outperform, and seven members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give Buckeye Technologies a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Buckeye Technologies is outperform, with an average price target of $39.13.

Over the decades, small-cap stocks like Buckeye Technologies 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." Get instant access to this free report.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor of Motley 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 don't 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.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1875378, ~/Articles/ArticleHandler.aspx, 5/25/2016 1:14:36 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Seth Jayson

Today's Market

updated Moments ago Sponsored by:
DOW 17,856.88 150.83 0.85%
S&P 500 2,092.90 16.84 0.81%
NASD 4,892.76 31.70 0.65%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
BKI $0.00 Down +0.00 +0.00%
Buckeye Technologi… CAPS Rating: *****