The 10-second takeaway
For the quarter ended June 30 (Q2), W.R. Grace missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly. Non-GAAP earnings per share dropped. GAAP earnings per share grew significantly.
Gross margins expanded, operating margins dropped, net margins grew.
W.R. Grace notched revenue of $802.8 million. The six analysts polled by S&P Capital IQ expected a top line of $820.4 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 $1.12. The 10 earnings estimates compiled by S&P Capital IQ forecast $1.09 per share. Non-GAAP EPS of $1.12 for Q2 were 1.8% lower than the prior-year quarter's $1.14 per share. GAAP EPS of $1.07 for Q2 were 19% higher than the prior-year quarter's $0.90 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 37.8%, 100 basis points better than the prior-year quarter. Operating margin was 16.2%, 40 basis points worse than the prior-year quarter. Net margin was 10.3%, 190 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $787.7 million. On the bottom line, the average EPS estimate is $1.04.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 130 members out of 161 rating the stock outperform, and 31 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give W.R. Grace a green thumbs-up, and five give it a red thumbs-down.
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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 has no position in any of the stocks mentioned. 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.