The 10-second takeaway
For the quarter ended June 30 (Q2), Rockwood Holdings missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share improved significantly.
Margins increased across the board.
Rockwood Holdings chalked up revenue of $905.6 million. The seven analysts polled by S&P Capital IQ predicted a top line of $978.1 million on the same basis. GAAP reported sales were 9.4% lower than the prior-year quarter's $1.00 billion.
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 $1.24. The seven earnings estimates compiled by S&P Capital IQ predicted $1.18 per share. GAAP EPS of $2.81 for Q2 were 138% higher than the prior-year quarter's $1.18 per share. (The prior-year quarter included $0.07 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.4%, 80 basis points better than the prior-year quarter. Operating margin was 16.9%, 50 basis points better than the prior-year quarter. Net margin was 24.8%, 1,530 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $940.1 million. On the bottom line, the average EPS estimate is $0.98.
Next year's average estimate for revenue is $3.70 billion. The average EPS estimate is $4.26.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 334 members out of 350 rating the stock outperform, and 16 members rating it underperform. Among 112 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 111 give Rockwood Holdings a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rockwood Holdings is outperform, with an average price target of $61.25.
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