The 10-second takeaway
For the quarter ended March 31 (Q1), Cytec Industries missed estimates on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share shrank significantly.
Gross margins grew, operating margins expanded, net margins shrank.
Cytec Industries logged revenue of $783.3 million. The two analysts polled by S&P Capital IQ expected a top line of $813.5 million on the same basis. GAAP reported sales were 2.3% higher than the prior-year quarter's $766.0 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 $1.28. The four earnings estimates compiled by S&P Capital IQ forecast $1.25 per share on the same basis. GAAP EPS of $1.14 for Q1 were 31% lower than the prior-year quarter's $1.66 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 26.9%, 340 basis points better than the prior-year quarter. Operating margin was 11.9%, 350 basis points better than the prior-year quarter. Net margin was 6.8%, 410 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $793.4 million. On the bottom line, the average EPS estimate is $1.16.
Next year's average estimate for revenue is $3.13 billion. The average EPS estimate is $4.71.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 90 members out of 103 rating the stock outperform, and 13 members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give Cytec Industries 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 Cytec Industries is outperform, with an average price target of $66.83.
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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.