The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Synutra International crushed expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly, and GAAP earnings per share improved.
Margins expanded across the board.
Synutra International logged revenue of $114.4 million. The three analysts polled by S&P Capital IQ predicted a top line of $85.5 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $44.2 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 $0.18. The two earnings estimates compiled by S&P Capital IQ forecast $0.17 per share. GAAP EPS were $0.18 for Q3 versus -$0.36 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 41.3%, 2,990 basis points better than the prior-year quarter. Operating margin was 18.7%, 7,320 basis points better than the prior-year quarter. Net margin was 9.0%, 5,530 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $91.4 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $319.8 million. The average EPS estimate is $0.34.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 78 members rating the stock outperform and 90 members rating it underperform. Among 68 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give Synutra International a green thumbs-up, and 39 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Synutra International is buy, with an average price target of $12.25.
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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.