Kraton Performance Polymers
The 10-second takeaway
For the quarter ended June 30 (Q2), Kraton Performance Polymers missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share contracted significantly. GAAP earnings per share shrank significantly.
Margins dropped across the board.
Kraton Performance Polymers tallied revenue of $334.5 million. The eight analysts polled by S&P Capital IQ wanted to see sales of $369.4 million on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $375.8 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 $0.15. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.24 per share. Non-GAAP EPS of $0.15 for Q2 were 69% lower than the prior-year quarter's $0.48 per share. GAAP EPS of $0.12 for Q2 were 68% lower than the prior-year quarter's $0.38 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 17.9%, 190 basis points worse than the prior-year quarter. Operating margin was 3.2%, 330 basis points worse than the prior-year quarter. Net margin was 1.1%, 220 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $358.9 million. On the bottom line, the average EPS estimate is $0.65.
Next year's average estimate for revenue is $1.40 billion. The average EPS estimate is $1.26.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 47 members out of 51 rating the stock outperform, and four members rating it underperform. Among 14 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give Kraton Performance Polymers 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 Kraton Performance Polymers is outperform, with an average price target of $25.25.
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