The 10-second takeaway
For the quarter ended March 31 (Q1), Koppers Holdings missed slightly on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased significantly.
Margins grew across the board.
Koppers Holdings notched revenue of $380.9 million. The four analysts polled by S&P Capital IQ hoped for revenue of $387.2 million on the same basis. GAAP reported sales were 6.1% higher than the prior-year quarter's $359.1 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 $0.74. The seven earnings estimates compiled by S&P Capital IQ predicted $0.57 per share. GAAP EPS of $0.74 for Q1 were 72% higher than the prior-year quarter's $0.43 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 14.2%, 150 basis points better than the prior-year quarter. Operating margin was 7.7%, 190 basis points better than the prior-year quarter. Net margin was 4.1%, 160 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $422.0 million. On the bottom line, the average EPS estimate is $1.12.
Next year's average estimate for revenue is $1.65 billion. The average EPS estimate is $3.57.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 162 members out of 173 rating the stock outperform, and 11 members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give Koppers Holdings a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Koppers Holdings is outperform, with an average price target of $47.50.
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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.