AMCOL International Beats on EPS But GAAP Results Lag

By Seth Jayson – Updated Apr 10, 2017 at 12:35PM

Just the facts, Fool.

AMCOL International (NYSE: ACO) reported earnings on July 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), AMCOL International met expectations on revenues and beat expectations on earnings per share.

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

Margins dropped across the board.

Revenue details
AMCOL International logged revenue of $262.8 million. The three analysts polled by S&P Capital IQ predicted a top line of $261.7 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 details
EPS came in at $0.57. The three earnings estimates compiled by S&P Capital IQ anticipated $0.54 per share. Non-GAAP EPS of $0.57 for Q2 were 12% lower than the prior-year quarter's $0.65 per share. GAAP EPS of $0.51 for Q2 were 24% lower than the prior-year quarter's $0.67 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 27.4%, 160 basis points worse than the prior-year quarter. Operating margin was 9.5%, 220 basis points worse than the prior-year quarter. Net margin was 6.3%, 210 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $264.5 million. On the bottom line, the average EPS estimate is $0.59.

Next year's average estimate for revenue is $1.02 billion. The average EPS estimate is $2.00.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AMCOL International is hold, with an average price target of $31.00.

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About the Author

Seth Jayson (TMFBent) began his Foolish career as a writer before recommending stocks in special products and then taking on the co-advisor role at our small-cap service, Hidden Gems, where he became the longest-serving HG advisor. After that, Seth specialized in beating the market with lesser-known, smaller companies at Market Pass before transitioning into the lead advisor role for Artificial Intelligence and Trend-Spotter. His work at TMF has also included some time building databases and "robots" that wrote thousands of articles on their own, along with other robots that uploaded these articles into our publishing system. Although these were too simple to qualify as AI (except maybe by 1950s terms), he likes to think that keeping a toe in the nitty-gritty of the tech gives him some valuable perspective that can help inform investing decisions. Originally from the frozen Iron Range of northern Minnesota, Seth graduated from Carleton College and holds master's degrees from NYU and the University of Missouri. When he's not riding bikes or hiking with the family, he's probably out running, or making carbon fiber bikes in the garage.

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