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Ashland Beats Analyst Estimates on EPS

By Seth Jayson - Updated Apr 7, 2017 at 11:55AM

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Just the facts, Fool.

Ashland (NYSE: ASH) reported earnings on Oct. 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q4), Ashland met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP loss per share expanded.

Gross margins increased, operating margins dropped, net margins dropped.

Revenue details
Ashland logged revenue of $2.06 billion. The six analysts polled by S&P Capital IQ expected a top line of $2.08 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $1.85 billion.

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 $1.87. The eight earnings estimates compiled by S&P Capital IQ predicted $1.76 per share. GAAP EPS were -$3.20 for Q4 versus -$1.45 per share for the prior-year quarter.

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 22.3%, 160 basis points better than the prior-year quarter. Operating margin was -13.2%, 450 basis points worse than the prior-year quarter. Net margin was -13.3%, 720 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.96 billion. On the bottom line, the average EPS estimate is $1.48.

Next year's average estimate for revenue is $8.67 billion. The average EPS estimate is $7.51.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ashland is outperform, with an average price target of $83.67.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

Ashland Global Holdings Inc. Stock Quote
Ashland Global Holdings Inc.
ASH
$105.69 (1.91%) $1.98

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