The 10-second takeaway
For the quarter ended Sep. 29 (Q3), Polypore International beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted significantly.
Margins contracted across the board.
Polypore International chalked up revenue of $177.6 million. The 10 analysts polled by S&P Capital IQ expected a top line of $174.2 million on the same basis. GAAP reported sales were 6.6% lower than the prior-year quarter's $190.1 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 $0.37. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.34 per share. GAAP EPS of $0.30 for Q3 were 40% lower than the prior-year quarter's $0.50 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 33.3%, 720 basis points worse than the prior-year quarter. Operating margin was 16.7%, 640 basis points worse than the prior-year quarter. Net margin was 8.0%, 440 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $196.9 million. On the bottom line, the average EPS estimate is $0.54.
Next year's average estimate for revenue is $731.6 million. The average EPS estimate is $1.86.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 229 members out of 256 rating the stock outperform, and 27 members rating it underperform. Among 55 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give Polypore International a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Polypore International is outperform, with an average price target of $41.10.
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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. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Polypore International. 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.