The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Innospec beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share contracted significantly.
Gross margins increased, operating margins contracted, net margins contracted.
Innospec chalked up revenue of $213.7 million. The three analysts polled by S&P Capital IQ expected to see revenue of $206.6 million on the same basis. GAAP reported sales were 6.6% higher than the prior-year quarter's $200.5 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 $0.89. The four earnings estimates compiled by S&P Capital IQ predicted $0.88 per share. GAAP EPS of $0.53 for Q4 were 35% lower than the prior-year quarter's $0.81 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 30.4%, 40 basis points better than the prior-year quarter. Operating margin was 12.2%, 120 basis points worse than the prior-year quarter. Net margin was 5.9%, 390 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $199.5 million. On the bottom line, the average EPS estimate is $0.85.
Next year's average estimate for revenue is $803.6 million. The average EPS estimate is $3.49.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 72 members out of 81 rating the stock outperform, and nine members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Innospec 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 Innospec is outperform, with an average price target of $39.33.
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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.