The 10-second takeaway
For the quarter ended March 31 (Q3), Aceto missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share increased significantly.
Margins improved across the board.
Aceto reported revenue of $121.4 million. The one analyst polled by S&P Capital IQ hoped for revenue of $132.5 million on the same basis. GAAP reported sales were 3% higher than the prior-year quarter's $117.9 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 $0.18. The one earnings estimate compiled by S&P Capital IQ anticipated $0.12 per share. GAAP EPS of $0.20 for Q3 were 43% higher than the prior-year quarter's $0.14 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 18.2%, 170 basis points better than the prior-year quarter. Operating margin was 6.2%, 100 basis points better than the prior-year quarter. Net margin was 4.4%, 110 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $136.5 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $407.6 million. The average EPS estimate is $0.46.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 247 members rating the stock outperform and seven members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 give Aceto 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 Aceto is buy, with an average price target of $11.
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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.