The 10-second takeaway
For the quarter ended March 31 (Q3), Buckeye Technologies missed estimates on revenues and earnings per share.
Compared with the prior-year quarter, revenue shrank and GAAP earnings per share shrank.
Gross margins increased, operating margins expanded, net margins shrank.
Buckeye Technologies chalked up revenue of $217.1 million. The four analysts polled by S&P Capital IQ expected sales of $227.1 million on the same basis. GAAP reported sales were 8.7% lower than the prior-year quarter's $237.8 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 $0.67. The five earnings estimates compiled by S&P Capital IQ averaged $0.69 per share on the same basis. GAAP EPS of $0.64 for Q3 were 8.6% lower than the prior-year quarter's $0.70 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 24.3%, 10 basis points better than the prior-year quarter. Operating margin was 19.2%, 70 basis points better than the prior-year quarter. Net margin was 11.9%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $230.1 million. On the bottom line, the average EPS estimate is $0.76.
Next year's average estimate for revenue is $929.2 million. The average EPS estimate is $2.90.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 157 members out of 164 rating the stock outperform, and seven members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give Buckeye Technologies a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Buckeye Technologies is outperform, with an average price target of $39.13.
Over the decades, small-cap stocks like Buckeye Technologies have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Get instant access to this free report.
- Add Buckeye Technologies to My Watchlist.
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.