The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Innophos Holdings missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share shrank significantly.
Margins shrank across the board.
Innophos Holdings tallied revenue of $208.8 million. The four analysts polled by S&P Capital IQ expected revenue of $217.0 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.62. The five earnings estimates compiled by S&P Capital IQ predicted $0.72 per share. GAAP EPS of $0.60 for Q4 were 35% lower than the prior-year quarter's $0.93 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 17.4%, 800 basis points worse than the prior-year quarter. Operating margin was 10.1%, 620 basis points worse than the prior-year quarter. Net margin was 6.4%, 360 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $238.8 million. On the bottom line, the average EPS estimate is $0.90.
Next year's average estimate for revenue is $932.6 million. The average EPS estimate is $3.79.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 799 members out of 822 rating the stock outperform, and 23 members rating it underperform. Among 266 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 261 give Innophos Holdings a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Innophos Holdings is outperform, with an average price target of $58.75.
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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.