The 10-second takeaway
For the quarter ended March 31 (Q1), Innophos Holdings beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share grew.
Margins shrank across the board.
Innophos Holdings logged revenue of $228.3 million. The two analysts polled by S&P Capital IQ hoped for a top line of $214.6 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $197.6 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 $0.90. The four earnings estimates compiled by S&P Capital IQ predicted $0.90 per share. GAAP EPS of $1.22 for Q1 were 6.1% higher than the prior-year quarter's $1.15 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 24.5%, 270 basis points worse than the prior-year quarter. Operating margin was 16.7%, 210 basis points worse than the prior-year quarter. Net margin was 12.1%, 100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $216.5 million. On the bottom line, the average EPS estimate is $0.97.
Next year's average estimate for revenue is $866.7 million. The average EPS estimate is $3.89.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 822 members rating the stock outperform and 23 members rating it underperform. Among 264 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 257 give Innophos Holdings a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Innophos Holdings is outperform, with an average price target of $58.67.
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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. Motley Fool newsletter services have recommended buying shares of Innophos 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.