Kraton Performance Polymers
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Kraton Performance Polymers beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly. Non-GAAP loss per share dropped. GAAP loss per share grew.
Gross margins increased, operating margins expanded, net margins dropped.
Kraton Performance Polymers reported revenue of $296.4 million. The nine analysts polled by S&P Capital IQ looked for sales of $289.3 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 -$0.21. The nine earnings estimates compiled by S&P Capital IQ forecast $0.11 per share. Non-GAAP EPS were -$0.21 for Q4 compared to -$0.66 per share for the prior-year quarter. GAAP EPS were -$0.92 for Q4 versus -$0.66 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 13.4%, 700 basis points better than the prior-year quarter. Operating margin was -2.5%, 470 basis points better than the prior-year quarter. Net margin was -9.9%, 300 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $384.8 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $1.44 billion. The average EPS estimate is $2.40.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 51 members out of 56 rating the stock outperform, and five members rating it underperform. Among 12 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 give Kraton Performance Polymers a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kraton Performance Polymers is outperform, with an average price target of $27.60.
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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.