The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Balchem beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share grew.
Margins shrank across the board.
Balchem recorded revenue of $80.1 million. The three analysts polled by S&P Capital IQ predicted sales of $71.7 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $69.7 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 $0.33. The three earnings estimates compiled by S&P Capital IQ averaged $0.34 per share. GAAP EPS of $0.33 for Q4 were 6.5% higher than the prior-year quarter's $0.31 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 28.0%, 190 basis points worse than the prior-year quarter. Operating margin was 18.8%, 80 basis points worse than the prior-year quarter. Net margin was 12.4%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $79.2 million. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $318.2 million. The average EPS estimate is $1.48.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 343 members out of 351 rating the stock outperform, and eight members rating it underperform. Among 93 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 92 give Balchem 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 Balchem is outperform, with an average price target of $37.33.
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