The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Balchem missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share was unchanged.
Gross margins grew, operating margins increased, net margins were steady.
Balchem reported revenue of $75.1 million. The three analysts polled by S&P Capital IQ predicted a top line of $77.4 million on the same basis. GAAP reported sales were 0.9% higher than the prior-year quarter's $74.4 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 $0.36. The three earnings estimates compiled by S&P Capital IQ forecast $0.35 per share. GAAP EPS of $0.36 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 31.1%, 70 basis points better than the prior-year quarter. Operating margin was 21.6%, 120 basis points better than the prior-year quarter. Net margin was 14.5%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $73.7 million. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $306.4 million. The average EPS estimate is $1.33.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 356 members out of 366 rating the stock outperform, and 10 members rating it underperform. Among 83 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 82 give Balchem a green thumbs-up, and one 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 $37.00.
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