The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Schweitzer-Mauduit International met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded significantly.
Margins improved across the board.
Schweitzer-Mauduit International logged revenue of $211.2 million. The four analysts polled by S&P Capital IQ expected sales of $211.8 million. Sales were 19% higher than the prior-year quarter's $182.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.54. The four earnings estimates compiled by S&P Capital IQ predicted $1.53 per share on the same basis. GAAP EPS of $2.86 for Q3 were 281% higher than the prior-year quarter's $0.75 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 37.6%, 1,120 basis points better than the prior-year quarter. Operating margin was 25.5%, 960 basis points better than the prior-year quarter. Net margin was 21.8%, 1,430 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $220.0 million. On the bottom line, the average EPS estimate is $1.86.
Next year's average estimate for revenue is $818.1 million. The average EPS estimate is $5.55.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 73 members out of 86 rating the stock outperform, and 13 members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Schweitzer-Mauduit International 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 Schweitzer-Mauduit International is outperform, with an average price target of $85.00.
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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.