The 10-second takeaway
For the quarter ended Sep. 30 (Q4), Sappi met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share increased.
Margins increased across the board.
Sappi tallied revenue of $1.59 billion. The two analysts polled by S&P Capital IQ expected a top line of $1.59 billion on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $1.79 billion.
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 $0.11. The one earnings estimate compiled by S&P Capital IQ averaged $0.09 per share. GAAP EPS were $0.20 for Q4 against -$0.25 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 13.2%, 170 basis points better than the prior-year quarter. Operating margin was 6.3%, 220 basis points better than the prior-year quarter. Net margin was 6.8%, 1,390 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.52 billion.
Next year's average estimate for revenue is $6.50 billion. The average EPS estimate is $0.32.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 56 members out of 65 rating the stock outperform, and nine members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give Sappi a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sappi is outperform, with an average price target of $3.74.
- Add Sappi to My Watchlist.
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. 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.