The 10-second takeaway
For the quarter ended June 30 (Q2), PolyOne beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share stayed the same. GAAP earnings per share increased significantly.
Margins grew across the board.
PolyOne recorded revenue of $1.04 billion. The five analysts polled by S&P Capital IQ foresaw a top line of $980.7 million on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $792.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.37. The seven earnings estimates compiled by S&P Capital IQ predicted $0.35 per share. Non-GAAP EPS of $0.37 were the same as the prior-year quarter. GAAP EPS of $0.39 for Q2 were 44% higher than the prior-year quarter's $0.27 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 19.6%, 10 basis points better than the prior-year quarter. Operating margin was 7.8%, 10 basis points better than the prior-year quarter. Net margin was 17.4%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $992.0 million. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $3.78 billion. The average EPS estimate is $1.22.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 167 members out of 182 rating the stock outperform, and 15 members rating it underperform. Among 61 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 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 $28.50.
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