Innophos Holdings Increases Sales but Misses Revenue Estimate

Innophos Holdings (Nasdaq: IPHS  ) reported earnings on Oct. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Innophos Holdings missed slightly on revenues and met expectations on earnings per share.

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

Margins dropped across the board.

Revenue details
Innophos Holdings notched revenue of $211.2 million. The four analysts polled by S&P Capital IQ anticipated sales of $215.5 million on the same basis. GAAP reported sales were 4.5% higher than the prior-year quarter's $202.1 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 $0.74. The five earnings estimates compiled by S&P Capital IQ forecast $0.73 per share. GAAP EPS of $0.74 for Q3 were 12% lower than the prior-year quarter's $0.84 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 20.3%, 420 basis points worse than the prior-year quarter. Operating margin was 11.6%, 490 basis points worse than the prior-year quarter. Net margin was 7.9%, 140 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $218.7 million. On the bottom line, the average EPS estimate is $0.75.

Next year's average estimate for revenue is $877.4 million. The average EPS estimate is $3.19.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 813 members out of 837 rating the stock outperform, and 24 members rating it underperform. Among 255 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 249 give Innophos Holdings a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Innophos Holdings is outperform, with an average price target of $59.25.

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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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. 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.

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