The 10-second takeaway
For the quarter ended Nov. 30 (Q4), OMNOVA Solutions whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share grew.
Gross margins increased, operating margins dropped, net margins grew.
OMNOVA Solutions reported revenue of $253.9 million. The three analysts polled by S&P Capital IQ hoped for a top line of $283.9 million on the same basis. GAAP reported sales were 16% lower than the prior-year quarter's $301.4 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 $0.07. The four earnings estimates compiled by S&P Capital IQ predicted $0.14 per share. GAAP EPS were $0.01 for Q4 compared to -$0.23 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 19.1%, 60 basis points better than the prior-year quarter. Operating margin was 4.5%, 250 basis points worse than the prior-year quarter. Net margin was 0.3%, 380 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $280.7 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $1.19 billion. The average EPS estimate is $0.78.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 144 members out of 170 rating the stock outperform, and 26 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give OMNOVA Solutions 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 OMNOVA Solutions is buy, with an average price target of $10.50.
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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 position in any of the stocks mentioned. 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.