The 10-second takeaway
For the quarter ended Nov. 30 (Q4), OMNOVA Solutions whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share grew.
Gross margins increased, operating margins dropped, net margins grew.
OMNOVA Solutions reported revenue of $253.9 million. The three analysts polled by S&P Capital IQ hoped for a top line of $283.9 million on the same basis. GAAP reported sales were 16% lower than the prior-year quarter's $301.4 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 $0.07. The four earnings estimates compiled by S&P Capital IQ predicted $0.14 per share. GAAP EPS were $0.01 for Q4 compared to -$0.23 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 19.1%, 60 basis points better than the prior-year quarter. Operating margin was 4.5%, 250 basis points worse than the prior-year quarter. Net margin was 0.3%, 380 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $280.7 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $1.19 billion. The average EPS estimate is $0.78.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 144 members out of 170 rating the stock outperform, and 26 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give OMNOVA Solutions 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 OMNOVA Solutions is buy, with an average price target of $10.50.
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