The 10-second takeaway
For the quarter ended Dec. 31 (Q4), OM Group missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins shrank, net margins grew.
OM Group logged revenue of $438.6 million. The one analyst polled by S&P Capital IQ predicted a top line of $459.1 million on the same basis. GAAP reported sales were 50% higher than the prior-year quarter's $293.1 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 $0.73. The three earnings estimates compiled by S&P Capital IQ averaged $0.91 per share on the same basis. GAAP EPS of $1.59 for Q4 were 106% higher than the prior-year quarter's $0.77 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 23.3%, 100 basis points worse than the prior-year quarter. Operating margin was 3.7%, 530 basis points worse than the prior-year quarter. Net margin was 11.6%, 350 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $477.9 million. On the bottom line, the average EPS estimate is $0.88.
Next year's average estimate for revenue is $1.58 billion. The average EPS estimate is $3.43.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on OM Group is hold, with an average price target of $30.00.
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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.