The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Neenah Paper met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share increased significantly. GAAP earnings per share expanded significantly.
Margins grew across the board.
Neenah Paper recorded revenue of $192.6 million. The two analysts polled by S&P Capital IQ hoped for revenue of $194.8 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $165.5 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 $0.60. The three earnings estimates compiled by S&P Capital IQ anticipated $0.57 per share. Non-GAAP EPS of $0.60 for Q4 were 28% higher than the prior-year quarter's $0.47 per share. GAAP EPS of $0.83 for Q4 were 80% higher than the prior-year quarter's $0.46 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 19.6%, 70 basis points better than the prior-year quarter. Operating margin was 9.0%, 70 basis points better than the prior-year quarter. Net margin was 7.1%, 240 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $200.7 million. On the bottom line, the average EPS estimate is $0.79.
Next year's average estimate for revenue is $841.3 million. The average EPS estimate is $2.91.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 112 members out of 125 rating the stock outperform, and 13 members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give Neenah Paper a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Neenah Paper is outperform, with an average price target of $35.00.
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