The 10-second takeaway
For the quarter ended June 30 (Q2), Axiall met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Margins grew across the board.
Axiall booked revenue of $1.27 billion. The nine analysts polled by S&P Capital IQ hoped for a top line of $1.27 billion on the same basis. GAAP reported sales were 47% higher than the prior-year quarter's $867.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $1.19. The 10 earnings estimates compiled by S&P Capital IQ forecast $1.16 per share. Non-GAAP EPS of $1.19 for Q2 were 102% higher than the prior-year quarter's $0.59 per share. GAAP EPS of $1.03 for Q2 were 164% higher than the prior-year quarter's $0.39 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 18.2%, 820 basis points better than the prior-year quarter. Operating margin was 10.5%, 650 basis points better than the prior-year quarter. Net margin was 5.7%, 410 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.26 billion. On the bottom line, the average EPS estimate is $1.35.
Next year's average estimate for revenue is $4.76 billion. The average EPS estimate is $4.19.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 14 members out of 16 rating the stock outperform, and two members rating it underperform. Among seven CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give Axiall 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 Axiall is outperform, with an average price target of $55.78.
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