Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.

The Gory Details of Buckeye Technologies's Earnings Miss

Buckeye Technologies (NYSE: BKI  ) reported earnings on Jan. 29. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Buckeye Technologies met expectations on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share expanded.

Gross margins dropped, operating margins dropped, net margins grew.

Revenue details
Buckeye Technologies recorded revenue of $204.3 million. The four analysts polled by S&P Capital IQ predicted sales of $206.3 million on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $227.1 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 $0.60. The six earnings estimates compiled by S&P Capital IQ anticipated $0.69 per share. GAAP EPS were $0.33 for Q2 against -$0.14 per share for the prior-year quarter.

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 23.2%, 80 basis points worse than the prior-year quarter. Operating margin was 17.8%, 100 basis points worse than the prior-year quarter. Net margin was 6.3%, 870 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $214.0 million. On the bottom line, the average EPS estimate is $0.70.

Next year's average estimate for revenue is $832.2 million. The average EPS estimate is $2.74.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 179 members out of 185 rating the stock outperform, and six members rating it underperform. Among 64 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 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 buy, with an average price target of $37.30.

Looking for alternatives to Buckeye Technologies? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for 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 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 owns shares of Buckeye Technologies. 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.

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.

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: 2224770, ~/Articles/ArticleHandler.aspx, 3/28/2015 1:23:50 AM

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...