The 10-second takeaway
For the quarter ended June 30 (Q2), Olin missed estimates on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share increased.
Margins improved across the board.
Olin notched revenue of $508.7 million. The eight analysts polled by S&P Capital IQ foresaw a top line of $530.5 million on the same basis. GAAP reported sales were 3.9% lower than the prior-year quarter's $529.1 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 $0.63. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.53 per share. GAAP EPS of $0.59 for Q2 were 13% higher than the prior-year quarter's $0.52 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 23.1%, 130 basis points better than the prior-year quarter. Operating margin was 14.2%, 40 basis points better than the prior-year quarter. Net margin was 9.4%, 140 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $553.3 million. On the bottom line, the average EPS estimate is $0.57.
Next year's average estimate for revenue is $2.09 billion. The average EPS estimate is $1.93.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 563 members out of 578 rating the stock outperform, and 15 members rating it underperform. Among 117 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 115 give Olin 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 Olin is hold, with an average price target of $23.17.
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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.
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