The 10-second takeaway
For the quarter ended Nov. 3 (Q4), Spartech missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP loss per share shrank.
Margins expanded across the board.
Spartech notched revenue of $286.8 million. The two analysts polled by S&P Capital IQ foresaw net sales of $293.0 million on the same basis. GAAP reported sales were 2.2% lower than the prior-year quarter's $293.2 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 $0.14. The three earnings estimates compiled by S&P Capital IQ anticipated $0.07 per share. GAAP EPS were -$0.03 for Q4 against -$0.90 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 11.4%, 280 basis points better than the prior-year quarter. Operating margin was 3.4%, 130 basis points better than the prior-year quarter. Net margin was -0.2%, 930 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $266.9 million. On the bottom line, the average EPS estimate is -$0.04.
Next year's average estimate for revenue is $1.20 billion. The average EPS estimate is $0.39.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 57 members out of 89 rating the stock outperform, and 32 members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give Spartech a green thumbs-up, and 10 give it a red thumbs-down.
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