Kraton Performance Polymers
The 10-second takeaway
For the quarter ended March 31 (Q1), Kraton Performance Polymers missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share shrank to a loss.
Margins contracted across the board.
Kraton Performance Polymers recorded revenue of $340.1 million. The eight analysts polled by S&P Capital IQ anticipated sales of $356.1 million on the same basis. GAAP reported sales were 17% lower than the prior-year quarter's $408.3 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 $0.07. The nine earnings estimates compiled by S&P Capital IQ predicted $0.28 per share. Non-GAAP EPS of $0.07 for Q1 were 86% lower than the prior-year quarter's $0.49 per share. GAAP EPS were -$0.12 for Q1 against $0.50 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 17.6%, 90 basis points worse than the prior-year quarter. Operating margin was 3.2%, 310 basis points worse than the prior-year quarter. Net margin was -1.1%, 510 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $376.0 million. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $1.42 billion. The average EPS estimate is $1.98.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 47 members out of 52 rating the stock outperform, and five members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 10 give Kraton Performance Polymers a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kraton Performance Polymers is outperform, with an average price target of $27.88.
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