The 10-second takeaway
For the quarter ended Oct. 31 (Q1), KMG Chemicals missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share grew.
Margins increased across the board.
KMG Chemicals chalked up revenue of $65.3 million. The one analyst polled by S&P Capital IQ predicted revenue of $69.4 million on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $73.3 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 one earnings estimate compiled by S&P Capital IQ forecast $0.31 per share. GAAP EPS of $0.35 for Q1 were 13% higher than the prior-year quarter's $0.31 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 30.7%, 450 basis points better than the prior-year quarter. Operating margin was 10.9%, 200 basis points better than the prior-year quarter. Net margin was 6.3%, 150 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $66.7 million. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $274.4 million. The average EPS estimate is $1.48.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 293 members out of 311 rating the stock outperform, and 18 members rating it underperform. Among 56 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give KMG Chemicals a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on KMG Chemicals is buy, with an average price target of $22.00.
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