Kraton Performance Polymers
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Kraton Performance Polymers missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved, and GAAP earnings per share dropped to a loss.
Margins contracted across the board.
Kraton Performance Polymers notched revenue of $304.2 million. The seven analysts polled by S&P Capital IQ hoped for net sales of $315.5 million on the same basis. GAAP reported sales were 5.6% higher than the prior-year quarter's $288.2 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 -$0.66. The nine earnings estimates compiled by S&P Capital IQ predicted -$0.27 per share. GAAP EPS were -$0.66 for Q4 against $0.33 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 6.4%, 1,420 basis points worse than the prior-year quarter. Operating margin was -8.1%, 1,520 basis points worse than the prior-year quarter. Net margin was -6.9%, 1,050 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $372.6 million. On the bottom line, the average EPS estimate is $0.62.
Next year's average estimate for revenue is $1.54 billion. The average EPS estimate is $3.22.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 67 members rating the stock outperform and four members rating it underperform. Among 21 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 give Kraton Performance Polymers a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kraton Performance Polymers is outperform, with an average price target of $31.13.
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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.