The 10-second takeaway
For the quarter ended March 31 (Q1), Rockwood Holdings beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly. Non-GAAP earnings per share shrank significantly. GAAP earnings per share dropped significantly.
Margins shrank across the board.
Rockwood Holdings logged revenue of $934.6 million. The eight analysts polled by S&P Capital IQ wanted to see revenue of $908.7 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 $0.68. The eight earnings estimates compiled by S&P Capital IQ averaged $0.67 per share. Non-GAAP EPS of $0.68 for Q1 were 45% lower than the prior-year quarter's $1.23 per share. GAAP EPS of $0.24 for Q1 were 74% lower than the prior-year quarter's $0.94 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 29.3%, 840 basis points worse than the prior-year quarter. Operating margin was 10.0%, 820 basis points worse than the prior-year quarter. Net margin was 2.0%, 630 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $948.9 million. On the bottom line, the average EPS estimate is $0.98.
Next year's average estimate for revenue is $3.68 billion. The average EPS estimate is $3.69.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 336 members out of 351 rating the stock outperform, and 15 members rating it underperform. Among 112 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 111 give Rockwood Holdings 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 Rockwood Holdings is outperform, with an average price target of $68.22.
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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 owns shares of Rockwood Holdings. 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.