The 10-second takeaway
For the quarter ended March 31 (Q1), PolyOne met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share grew. GAAP earnings per share contracted significantly.
Gross margins expanded, operating margins dropped, net margins shrank.
PolyOne reported revenue of $801.1 million. The five analysts polled by S&P Capital IQ wanted to see revenue of $808.1 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 $0.31. The eight earnings estimates compiled by S&P Capital IQ predicted $0.26 per share. Non-GAAP EPS of $0.31 for Q1 were 6.9% higher than the prior-year quarter's $0.29 per share. GAAP EPS of $0.16 for Q1 were 27% lower than the prior-year quarter's $0.22 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 20.3%, 230 basis points better than the prior-year quarter. Operating margin was 5.0%, 70 basis points worse than the prior-year quarter. Net margin was 1.9%, 70 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.11 billion. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $3.94 billion. The average EPS estimate is $1.17.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 170 members out of 185 rating the stock outperform, and 15 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give PolyOne a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PolyOne is outperform, with an average price target of $27.33.
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