The 10-second takeaway
For the quarter ended Sep. 30 (Q3), OM Group missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share increased.
Gross margins contracted, operating margins contracted, net margins grew.
OM Group tallied revenue of $394.7 million. The one analyst polled by S&P Capital IQ expected to see sales of $409.0 million on the same basis. GAAP reported sales were 4.9% lower than the prior-year quarter's $415.1 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 $0.25. The four earnings estimates compiled by S&P Capital IQ averaged $0.36 per share. GAAP EPS were $0.17 for Q3 against -$2.17 per share for 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 24.7%, 190 basis points worse than the prior-year quarter. Operating margin was 5.4%, 600 basis points worse than the prior-year quarter. Net margin was 1.4%, 1,780 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $421.0 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $1.73 billion. The average EPS estimate is $1.99.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on OM Group is outperform, with an average price target of $30.75.
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