KapStone Paper and Packaging
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), KapStone Paper and Packaging missed estimates on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share increased significantly.
Gross margins improved, operating margins contracted, and net margins grew.
KapStone Paper and Packaging booked revenue of $268.8 million. The four analysts polled by S&P Capital IQ hoped for sales of $287.8 million on the same basis. GAAP reported sales were 35% higher than the prior-year quarter's $199.6 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 $1.56. The three earnings estimates compiled by S&P Capital IQ predicted $0.31 per share. GAAP EPS of $1.56 for Q4 were 478% higher than the prior-year quarter's $0.27 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 35.0%, 820 basis points better than the prior-year quarter. Operating margin was 8.0%, 80 basis points worse than the prior-year quarter. Net margin was 27.6%, 2,100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $303.1 million. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $1.24 billion. The average EPS estimate is $1.80.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 123 members out of 131 rating the stock outperform, and eight members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give KapStone Paper and Packaging 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 KapStone Paper and Packaging is buy, with an average price target of $20.90.
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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.