Rockwood Holdings Beats on Revenue, Matches Expectations on EPS

Rockwood Holdings (NYSE: ROC  ) reported earnings on Feb. 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Rockwood Holdings beat expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue increased slightly. Non-GAAP earnings per share shrank significantly. GAAP earnings per share dropped significantly.

Margins contracted across the board.

Revenue details
Rockwood Holdings logged revenue of $829.0 million. The eight analysts polled by S&P Capital IQ expected sales of $790.8 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 $0.47. The eight earnings estimates compiled by S&P Capital IQ predicted $0.47 per share. Non-GAAP EPS of $0.47 for Q4 were 48% lower than the prior-year quarter's $0.91 per share. GAAP EPS of $0.26 for Q4 were 67% lower than the prior-year quarter's $0.79 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 27.1%, 860 basis points worse than the prior-year quarter. Operating margin was 8.3%, 680 basis points worse than the prior-year quarter. Net margin was 2.6%, 510 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $914.8 million. On the bottom line, the average EPS estimate is $0.85.

Next year's average estimate for revenue is $3.69 billion. The average EPS estimate is $4.08.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 349 members out of 364 rating the stock outperform, and 15 members rating it underperform. Among 135 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 134 give Rockwood Holdings a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rockwood Holdings is outperform, with an average price target of $53.13.

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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 owns shares of Rockwood Holdings. 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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