The 10-second takeaway
For the quarter ended March 31 (Q1), Sensient Technologies beat expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew.
Margins expanded across the board.
Sensient Technologies tallied revenue of $365.7 million. The two analysts polled by S&P Capital IQ expected a top line of $358.1 million on the same basis. GAAP reported sales were 4.6% higher than the prior-year quarter's $349.7 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 $0.58. The three earnings estimates compiled by S&P Capital IQ averaged $0.57 per share. GAAP EPS of $0.58 for Q1 were 9.4% higher than the prior-year quarter's $0.53 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 31.5%, 70 basis points better than the prior-year quarter. Operating margin was 12.7%, 20 basis points better than the prior-year quarter. Net margin was 7.9%, 30 basis points better than the prior-year quarter.
On the bottom line, the average EPS estimate is $0.70.
Next year's average estimate for revenue is $1.49 billion. The average EPS estimate is $2.55.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 74 members out of 79 rating the stock outperform, and five members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give Sensient Technologies 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 Sensient Technologies is hold, with an average price target of $40.50.
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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.