The 10-second takeaway
For the quarter ended March 31 (Q1), PolyOne met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share dropped significantly.
Gross margins grew, operating margins dropped, net margins dropped.
PolyOne reported revenue of $781.0 million. The six analysts polled by S&P Capital IQ expected to see revenue of $776.1 million on the same basis. GAAP reported sales were 8.7% higher than the prior-year quarter's $718.5 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 $0.29. The seven earnings estimates compiled by S&P Capital IQ predicted $0.26 per share. GAAP EPS of $0.22 for Q1 were 81% lower than the prior-year quarter's $1.14 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 18.0%, 120 basis points better than the prior-year quarter. Operating margin was 5.7%, 40 basis points worse than the prior-year quarter. Net margin was 2.6%, 1,270 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $840.9 million. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $3.16 billion. The average EPS estimate is $1.16.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 152 members out of 167 rating the stock outperform, and 15 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give PolyOne 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 PolyOne is outperform, with an average price target of $17.17.
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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.