Kraton Performance Polymers
The 10-second takeaway
For the quarter ended March 31 (Q1), Kraton Performance Polymers beat expectations on revenues and missed estimates on earnings per share.
Compared with the prior-year quarter, revenue increased significantly and GAAP earnings per share contracted significantly.
Margins dropped across the board.
Kraton Performance Polymers notched revenue of $408.3 million. The seven analysts polled by S&P Capital IQ anticipated revenue of $368.9 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $344.8 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 $0.49. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.64 per share. GAAP EPS of $0.50 for Q1 were 26% lower than the prior-year quarter's $0.68 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 18.5%, 670 basis points worse than the prior-year quarter. Operating margin was 6.3%, 530 basis points worse than the prior-year quarter. Net margin was 4.0%, 230 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $430.5 million. On the bottom line, the average EPS estimate is $1.17.
Next year's average estimate for revenue is $1.55 billion. The average EPS estimate is $3.00.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 59 members out of 62 rating the stock outperform, and four members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give Kraton Performance Polymers 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 Kraton Performance Polymers is outperform, with an average price target of $34.44.
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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. 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.