The 10-second takeaway
For the quarter ended June 30 (Q2), Innophos Holdings met expectations on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Innophos Holdings chalked up revenue of $214.2 million. The four analysts polled by S&P Capital IQ predicted net sales of $215.2 million on the same basis. GAAP reported sales were 6.2% higher than the prior-year quarter's $201.6 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 $0.81. The five earnings estimates compiled by S&P Capital IQ predicted $0.89 per share. GAAP EPS of $0.73 for Q2 were 21% lower than the prior-year quarter's $0.92 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 19.8%, 460 basis points worse than the prior-year quarter. Operating margin was 12.3%, 390 basis points worse than the prior-year quarter. Net margin was 7.7%, 260 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $215.7 million. On the bottom line, the average EPS estimate is $0.96.
Next year's average estimate for revenue is $879.5 million. The average EPS estimate is $3.72.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 809 members out of 832 rating the stock outperform, and 23 members rating it underperform. Among 239 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 233 give Innophos Holdings a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Innophos Holdings is outperform, with an average price target of $59.25.
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