The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Rockwood Holdings beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly. Non-GAAP earnings per share shrank significantly. GAAP earnings per share dropped significantly.
Margins contracted across the board.
Rockwood Holdings logged revenue of $829.0 million. The eight analysts polled by S&P Capital IQ expected sales of $790.8 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 $0.47. The eight earnings estimates compiled by S&P Capital IQ predicted $0.47 per share. Non-GAAP EPS of $0.47 for Q4 were 48% lower than the prior-year quarter's $0.91 per share. GAAP EPS of $0.26 for Q4 were 67% lower than the prior-year quarter's $0.79 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 27.1%, 860 basis points worse than the prior-year quarter. Operating margin was 8.3%, 680 basis points worse than the prior-year quarter. Net margin was 2.6%, 510 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $914.8 million. On the bottom line, the average EPS estimate is $0.85.
Next year's average estimate for revenue is $3.69 billion. The average EPS estimate is $4.08.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 349 members out of 364 rating the stock outperform, and 15 members rating it underperform. Among 135 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 134 give Rockwood Holdings 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 Rockwood Holdings is outperform, with an average price target of $53.13.
Looking for alternatives to Rockwood Holdings? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Rockwood Holdings to My Watchlist.