The Gory Details on Polypore International's Double Miss

Just the facts, Fool.

Seth Jayson
Seth Jayson
Feb 21, 2013 at 12:00AM
Other

Polypore International (NYSE: PPO) reported earnings on Feb. 20. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 29 (Q4), Polypore International missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share dropped significantly. GAAP earnings per share contracted significantly.

Margins dropped across the board.

Revenue details
Polypore International chalked up revenue of $180.2 million. The 12 analysts polled by S&P Capital IQ wanted to see revenue of $190.5 million on the same basis. GAAP reported sales were 5.6% lower than the prior-year quarter's $191.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.43. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.52 per share. Non-GAAP EPS of $0.43 for Q4 were 26% lower than the prior-year quarter's $0.58 per share. GAAP EPS of $0.37 for Q4 were 34% lower than the prior-year quarter's $0.56 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 35.2%, 570 basis points worse than the prior-year quarter. Operating margin was 19.4%, 350 basis points worse than the prior-year quarter. Net margin was 9.7%, 410 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $191.5 million. On the bottom line, the average EPS estimate is $0.52.

Next year's average estimate for revenue is $801.3 million. The average EPS estimate is $2.28.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 220 members out of 251 rating the stock outperform, and 31 members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give Polypore International a green thumbs-up, and 12 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Polypore International is outperform, with an average price target of $41.80.

If you're interested in companies like Polypore International, you might want to check out the jaw-dropping technology that's about to put 100 million Chinese factory workers out on the street – and the 3 companies that control it. We'll tell you all about them in "The Future is Made in America." Click here for instant access to this free report.