The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Rockwood Holdings missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share shrank significantly.
Gross margins expanded, operating margins grew, net margins contracted.
Rockwood Holdings recorded revenue of $814.4 million. The seven analysts polled by S&P Capital IQ looked for a top line of $867.1 million on the same basis. GAAP reported sales were 2.0% higher than the prior-year quarter's $798.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.91. The seven earnings estimates compiled by S&P Capital IQ predicted $0.79 per share on the same basis. GAAP EPS of $0.79 for Q4 were 43% lower than the prior-year quarter's $1.39 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.7%, 440 basis points better than the prior-year quarter. Operating margin was 15.1%, 450 basis points better than the prior-year quarter. Net margin was 7.7%, 600 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $950.2 million. On the bottom line, the average EPS estimate is $1.02.
Next year's average estimate for revenue is $3.91 billion. The average EPS estimate is $4.27.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 329 members out of 346 rating the stock outperform, and 17 members rating it underperform. Among 135 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 133 give Rockwood Holdings 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 Rockwood Holdings is outperform, with an average price target of $54.43.
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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. The Motley Fool owns shares of Rockwood Holdings. 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.