The 10-second takeaway
For the quarter ended Dec. 31 (Q4), PolyOne met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped significantly.
Gross margins increased, operating margins increased, net margins shrank.
PolyOne reported revenue of $679.4 million. The five analysts polled by S&P Capital IQ hoped for sales of $673.7 million on the same basis. GAAP reported sales were 6.1% higher than the prior-year quarter's $640.4 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 $0.21. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.21 per share. GAAP EPS of $0.03 for Q4 were 77% lower than the prior-year quarter's $0.13 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 18.6%, 200 basis points better than the prior-year quarter. Operating margin was -0.6%, 640 basis points better than the prior-year quarter. Net margin was 0.5%, 140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $947.8 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $3.75 billion. The average EPS estimate is $1.39.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 161 members out of 175 rating the stock outperform, and 14 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 53 give PolyOne a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PolyOne is outperform, with an average price target of $22.67.
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