The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Cytec Industries beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted, and GAAP earnings per share shrank.
Gross margins grew, operating margins grew, net margins dropped.
Cytec Industries booked revenue of $778.4 million. The three analysts polled by S&P Capital IQ expected a top line of $762.9 million. Sales were 4.5% higher than the prior-year quarter's $837.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.10. The six earnings estimates compiled by S&P Capital IQ predicted $0.81 per share on the same basis. GAAP EPS of $0.88 for Q3 were 7.9% lower than the prior-year quarter's $0.96 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 24.8%, 180 basis points better than the prior-year quarter. Operating margin was 8.9%, 230 basis points better than the prior-year quarter. Net margin was 5.7%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $738.2 million. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $3.07 billion. The average EPS estimate is $3.28.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 85 members out of 98 rating the stock outperform, and 13 members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give Cytec Industries a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cytec Industries is outperform, with an average price target of $50.33.
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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. 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.