The 10-second takeaway
For the quarter ended March 31 (Q1), Rockwood Holdings missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share dropped significantly.
Gross margins increased, operating margins increased, net margins dropped.
Rockwood Holdings reported revenue of $909.5 million. The seven analysts polled by S&P Capital IQ expected to see revenue of $943.4 million on the same basis. GAAP reported sales were 0.5% lower than the prior-year quarter's $914.0 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 $1.23. The seven earnings estimates compiled by S&P Capital IQ predicted $1.03 per share on the same basis. GAAP EPS of $0.94 for Q1 were 58% lower than the prior-year quarter's $2.24 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 37.7%, 260 basis points better than the prior-year quarter. Operating margin was 18.2%, 280 basis points better than the prior-year quarter. Net margin was 8.3%, 1,120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.04 billion. On the bottom line, the average EPS estimate is $1.25.
Next year's average estimate for revenue is $3.87 billion. The average EPS estimate is $4.46.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 332 members out of 347 rating the stock outperform, and 17 members rating it underperform. Among 126 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 125 give Rockwood Holdings a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rockwood Holdings is outperform, with an average price target of $61.25.
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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. The Motley Fool owns shares of Rockwood Holdings. 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.