The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Buckeye Technologies met expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share expanded.
Gross margins dropped, operating margins dropped, net margins grew.
Buckeye Technologies recorded revenue of $204.3 million. The four analysts polled by S&P Capital IQ predicted sales of $206.3 million on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $227.1 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 $0.60. The six earnings estimates compiled by S&P Capital IQ anticipated $0.69 per share. GAAP EPS were $0.33 for Q2 against -$0.14 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 23.2%, 80 basis points worse than the prior-year quarter. Operating margin was 17.8%, 100 basis points worse than the prior-year quarter. Net margin was 6.3%, 870 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $214.0 million. On the bottom line, the average EPS estimate is $0.70.
Next year's average estimate for revenue is $832.2 million. The average EPS estimate is $2.74.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 179 members out of 185 rating the stock outperform, and six members rating it underperform. Among 64 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 give Buckeye Technologies a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Buckeye Technologies is buy, with an average price target of $37.30.
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