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Innophos Holdings Whiffs on Earnings

By Seth Jayson - Updated Apr 10, 2017 at 12:34PM

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Just the facts, Fool.

Innophos Holdings (Nasdaq: IPHS) reported earnings on April 29. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Innophos Holdings missed estimates on revenues and whiffed on earnings per share.

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

Margins shrank across the board.

Revenue details
Innophos Holdings booked revenue of $214.4 million. The three analysts polled by S&P Capital IQ hoped for net sales of $230.2 million on the same basis. GAAP reported sales were 6.1% lower than the prior-year quarter's $228.3 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 $0.60. The five earnings estimates compiled by S&P Capital IQ averaged $0.78 per share. Non-GAAP EPS of $0.60 for Q1 were 33% lower than the prior-year quarter's $0.90 per share. GAAP EPS of $0.55 for Q1 were 55% lower than the prior-year quarter's $1.22 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 17.3%, 720 basis points worse than the prior-year quarter. Operating margin was 8.4%, 830 basis points worse than the prior-year quarter. Net margin was 5.8%, 630 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $235.0 million. On the bottom line, the average EPS estimate is $0.96.

Next year's average estimate for revenue is $927.3 million. The average EPS estimate is $3.67.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 792 members out of 815 rating the stock outperform, and 23 members rating it underperform. Among 248 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 243 give Innophos Holdings a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Innophos Holdings is outperform, with an average price target of $58.25.

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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.

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