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Can Olin Beat These Numbers?

By Seth Jayson - Updated Apr 10, 2017 at 1:46PM

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Checking expectations

Olin (NYSE: OLN) is expected to report Q1 earnings on April 25. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Olin's revenues will grow 20.6% and EPS will drop -7.8%.

The average estimate for revenue is $611.9 million. On the bottom line, the average EPS estimate is $0.47.

Revenue details
Last quarter, Olin logged revenue of $587.6 million. GAAP reported sales were 32% higher than the prior-year quarter's $445.8 million.

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

EPS details
Last quarter, non-GAAP EPS came in at $0.38. GAAP EPS of $0.43 for Q4 were 87% higher than the prior-year quarter's $0.23 per share.

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

Recent performance
For the preceding quarter, gross margin was 17.0%, 40 basis points worse than the prior-year quarter. Operating margin was 10.6%, 230 basis points better than the prior-year quarter. Net margin was 5.9%, 170 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $2.52 billion. The average EPS estimate is $2.13.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 578 members out of 595 rating the stock outperform, and 17 members rating it underperform. Among 137 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 135 give Olin 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 Olin is hold, with an average price target of $22.50.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

Olin Corporation Stock Quote
Olin Corporation
OLN
$53.78 (3.26%) $1.70

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