The 10-second takeaway
For the quarter ended March 31 (Q1), OM Group missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly. Non-GAAP earnings per share shrank significantly. GAAP earnings per share dropped to a loss.
Margins shrank across the board.
OM Group booked revenue of $278.0 million. The two analysts polled by S&P Capital IQ wanted to see revenue of $287.5 million on the same basis. GAAP reported sales were 22% lower than the prior-year quarter's $466.2 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 $0.15. The four earnings estimates compiled by S&P Capital IQ predicted $0.04 per share. Non-GAAP EPS of $0.15 for Q1 were 79% lower than the prior-year quarter's $0.72 per share. GAAP EPS were -$3.44 for Q1 compared to $0.37 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 21.1%, 650 basis points worse than the prior-year quarter. Operating margin was 3.9%, 690 basis points worse than the prior-year quarter. Net margin was -30.1%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $300.4 million. On the bottom line, the average EPS estimate is $0.29.
Next year's average estimate for revenue is $1.16 billion. The average EPS estimate is $1.06.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on OM Group is outperform, with an average price target of $33.50.
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