Ashland (NYSE: ASH ) reported earnings on July 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q3), Ashland beat expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share contracted significantly. GAAP earnings per share dropped significantly.
Margins shrank across the board.
Ashland logged revenue of $2.10 billion. The six analysts polled by S&P Capital IQ foresaw sales of $2.06 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
EPS came in at $1.66. The 10 earnings estimates compiled by S&P Capital IQ forecast $1.85 per share. Non-GAAP EPS of $1.66 for Q3 were 19% lower than the prior-year quarter's $2.04 per share. (The prior-year quarter included -$0.11 per share in earnings from discontinued operations.) GAAP EPS of $1.55 for Q3 were 18% lower than the prior-year quarter's $1.89 per share. (The prior-year quarter included -$0.11 per share in earnings from discontinued operations.)
For the quarter, gross margin was 28.2%, 110 basis points worse than the prior-year quarter. Operating margin was 8.8%, 320 basis points worse than the prior-year quarter. Net margin was 6.0%, 110 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.03 billion. On the bottom line, the average EPS estimate is $1.83.
Next year's average estimate for revenue is $7.93 billion. The average EPS estimate is $6.62.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ashland is outperform, with an average price target of $98.86.
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