The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Aceto beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased.
Margins grew across the board.
Aceto booked revenue of $110.7 million. The two analysts polled by S&P Capital IQ looked for a top line of $95.3 million. GAAP sales were 29% higher than the prior-year quarter's $85.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.17. The one earnings estimate compiled by S&P Capital IQ predicted $0.07 per share. GAAP EPS were $0.17 for Q2 versus -$0.05 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 18.6%, 330 basis points better than the prior-year quarter. Operating margin was 6.4%, 440 basis points better than the prior-year quarter. Net margin was 4.1%, 550 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $139.3 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $407.6 million. The average EPS estimate is $0.46.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 250 members out of 256 rating the stock outperform, and six members rating it underperform. Among 70 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 give Aceto 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 Aceto is buy, with an average price target of $10.75.
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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.