The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Neenah Paper missed estimates on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share improved.
Margins increased across the board.
Neenah Paper reported revenue of $165.5 million. The two analysts polled by S&P Capital IQ anticipated a top line of $178.3 million on the same basis. GAAP reported sales were 3.2% higher than the prior-year quarter's $160.3 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 $0.47. The three earnings estimates compiled by S&P Capital IQ predicted $0.44 per share on the same basis. GAAP EPS of $0.46 for Q4 was 7.0% higher than the prior-year quarter's $0.43 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 18.9%, 160 basis points better than the prior-year quarter. Operating margin was 8.3%, 230 basis points better than the prior-year quarter. Net margin was 4.7%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $206.0 million. On the bottom line, the average EPS estimate is $0.62.
Next year's average estimate for revenue is $833.0 million. The average EPS estimate is $2.53.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 109 members rating the stock outperform and 15 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give Neenah Paper 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 Neenah Paper is outperform, with an average price target of $28.00.
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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.