KMG Chemicals
The 10-second takeaway
For the quarter ended July 31 (Q4), KMG Chemicals met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share expanded significantly.
Margins expanded across the board.
Revenue details
KMG Chemicals reported revenue of $67.6 million. The two analysts polled by S&P Capital IQ anticipated sales of $67.3 million on the same basis. GAAP reported sales were 8.9% lower than the prior-year quarter's $74.2 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 $0.34. The one earnings estimate compiled by S&P Capital IQ averaged $0.33 per share. GAAP EPS of $0.33 for Q4 were 230% higher than the prior-year quarter's $0.10 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 30.5%, 630 basis points better than the prior-year quarter. Operating margin was 9.9%, 660 basis points better than the prior-year quarter. Net margin was 5.7%, 410 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $69.4 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $271.9 million. The average EPS estimate is $1.49.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 292 members out of 310 rating the stock outperform, and 18 members rating it underperform. Among 58 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 53 give KMG Chemicals a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on KMG Chemicals is buy, with an average price target of $22.00.
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