Balchem
The 10-second takeaway
For the quarter ended June 30 (Q2), Balchem beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew.
Gross margins dropped, operating margins were steady, net margins dropped.
Revenue details
Balchem reported revenue of $79.0 million. The three analysts polled by S&P Capital IQ predicted revenue of $76.0 million on the same basis. GAAP reported sales were 5.8% higher than the prior-year quarter's $74.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.33. The three earnings estimates compiled by S&P Capital IQ predicted $0.31 per share. GAAP EPS of $0.33 for Q2 were 3.1% higher than the prior-year quarter's $0.32 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 28.6%, 50 basis points worse than the prior-year quarter. Operating margin was 18.8%, about the same as the prior-year quarter. Net margin was 12.6%, 20 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $77.4 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $306.0 million. The average EPS estimate is $1.31.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 363 members out of 371 rating the stock outperform, and eight members rating it underperform. Among 88 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 88 give Balchem a green thumbs-up, and none give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Balchem is outperform, with an average price target of $33.00.
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