The 10-second takeaway
For the quarter ended March 31 (Q2), Ashland met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share grew significantly. GAAP earnings per share contracted significantly.
Gross margins increased, operating margins contracted, net margins dropped.
Ashland reported revenue of $2.00 billion. The six analysts polled by S&P Capital IQ anticipated sales of $1.98 billion on the same basis. GAAP reported sales were 5.1% lower than the prior-year quarter's $2.08 billion.
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 $1.78. The nine earnings estimates compiled by S&P Capital IQ anticipated $1.55 per share. Non-GAAP EPS of $1.78 for Q2 were 17% higher than the prior-year quarter's $1.52 per share. (The prior-year quarter included -$0.03 per share in earnings from discontinued operations.) GAAP EPS of $0.66 for Q2 were 41% lower than the prior-year quarter's $1.11 per share. (The prior-year quarter included -$0.03 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 28.8%, 100 basis points better than the prior-year quarter. Operating margin was 9.5%, 80 basis points worse than the prior-year quarter. Net margin was 2.7%, 150 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.12 billion. On the bottom line, the average EPS estimate is $1.98.
Next year's average estimate for revenue is $8.08 billion. The average EPS estimate is $6.68.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ashland is outperform, with an average price target of $89.43.
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