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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