The 10-second takeaway
For the quarter ended Sep. 30 (Q2), Synutra International missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped to a loss.
Margins shrank across the board.
Synutra International logged revenue of $66.1 million. The three analysts polled by S&P Capital IQ looked for a top line of $71.1 million on the same basis. GAAP reported sales were 33% lower than the prior-year quarter's $99.1 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 -$0.27. The two earnings estimates compiled by S&P Capital IQ predicted $0.04 per share. GAAP EPS were -$0.77 for Q2 against $0.15 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 26.4%, 1,600 basis points worse than the prior-year quarter. Operating margin was -21.3%, 3,650 basis points worse than the prior-year quarter. Net margin was -66.8%, 7,540 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $123.4 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $363.1 million. The average EPS estimate is $0.29.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 76 members out of 152 rating the stock outperform, and 76 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give Synutra International a green thumbs-up, and 31 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Synutra International is buy, with an average price target of $8.50.
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