The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Neenah Paper beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share grew significantly.
Margins grew across the board.
Neenah Paper reported revenue of $206.3 million. The two analysts polled by S&P Capital IQ looked for a top line of $203.3 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $174.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.56. The three earnings estimates compiled by S&P Capital IQ anticipated $0.54 per share. GAAP EPS of $0.54 for Q3 were 32% higher than the prior-year quarter's $0.41 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 17.3%, 160 basis points better than the prior-year quarter. Operating margin was 8.3%, 120 basis points better than the prior-year quarter. Net margin was 4.4%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $200.5 million. On the bottom line, the average EPS estimate is $0.64.
Next year's average estimate for revenue is $813.7 million. The average EPS estimate is $2.80.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 111 members out of 124 rating the stock outperform, and 13 members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give Neenah Paper a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Neenah Paper is buy, with an average price target of $35.00.
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