The 10-second takeaway
For the quarter ended March 31 (Q3), Buckeye Technologies met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share contracted significantly. GAAP earnings per share expanded.
Gross margins dropped, operating margins shrank, net margins grew.
Buckeye Technologies logged revenue of $195.6 million. The five analysts polled by S&P Capital IQ predicted revenue of $197.6 million on the same basis. GAAP reported sales were 9.9% lower than the prior-year quarter's $217.1 million.
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 $0.53. The six earnings estimates compiled by S&P Capital IQ anticipated $0.51 per share. Non-GAAP EPS of $0.53 for Q3 were 21% lower than the prior-year quarter's $0.67 per share. GAAP EPS of $0.71 for Q3 were 11% higher than the prior-year quarter's $0.64 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 22.2%, 210 basis points worse than the prior-year quarter. Operating margin was 16.1%, 310 basis points worse than the prior-year quarter. Net margin was 14.5%, 260 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $211.2 million. On the bottom line, the average EPS estimate is $0.65.
Next year's average estimate for revenue is $811.9 million. The average EPS estimate is $2.34.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 171 members out of 179 rating the stock outperform, and eight members rating it underperform. Among 58 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 57 give Buckeye Technologies 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 Buckeye Technologies is hold, with an average price target of $36.20.
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