The 10-second takeaway
For the quarter ended March 31 (Q1), Olin beat expectations on revenues and crushed expectations on earnings per share.
Compared with the prior-year quarter, revenue expanded significantly and GAAP earnings per share contracted significantly.
Gross margins increased, operating margins improved, net margins contracted.
Olin notched revenue of $507.2 million. The eight analysts polled by S&P Capital IQ looked for sales of $488.7 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $436.0 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 $0.51. The nine earnings estimates compiled by S&P Capital IQ predicted $0.42 per share. GAAP EPS of $0.48 for Q1 were 71% 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 22.5%, 490 basis points better than the prior-year quarter. Operating margin was 14.0%, 520 basis points better than the prior-year quarter. Net margin was 7.6%, 2,310 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $558.1 million. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $2.08 billion. The average EPS estimate is $1.91.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 557 members out of 572 rating the stock outperform, and 15 members rating it underperform. Among 117 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 116 give Olin 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 Olin is outperform, with an average price target of $24.18.
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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. He is the 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 don't 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.