The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Sensient Technologies missed estimates on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share expanded.
Margins improved across the board.
Sensient Technologies recorded revenue of $340.4 million. The two analysts polled by S&P Capital IQ hoped for revenue of $355.6 million. Sales were 0.3% higher than the prior-year quarter's $339.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.57. The four earnings estimates compiled by S&P Capital IQ averaged $0.56 per share. GAAP EPS of $0.57 for Q4 were 9.6% higher than the prior-year quarter's $0.52 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 31.8%, 170 basis points better than the prior-year quarter. Operating margin was 12.6%, 90 basis points better than the prior-year quarter. Net margin was 8.4%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $376.5 million. On the bottom line, the average EPS estimate is $0.59.
Next year's average estimate for revenue is $1.51 billion. The average EPS estimate is $2.56.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 74 members out of 79 rating the stock outperform, and five members rating it underperform. Among 29 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 give Sensient Technologies a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sensient Technologies is hold, with an average price target of $40.50.
Can your retirement portfolio provide you with enough income to last? You'll need more than Sensient Technologies. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.
- Add Sensient Technologies to My Watchlist.
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.
More from The Motley Fool
2 Dividend Stocks to Stay Away From -- and 1 Worth Buying
Investors looking for income should steer clear from Sensient Technologies and Ferrellgas Partners, LP, but may consider buying Scotts Miracle-Gro.
Sensient Technologies Beats Analyst Estimates on EPS
Just the facts, Fool.
How Quickly Is the Cash Coming at Sensient Technologies?
Don't just count the cash, time it.