The 10-second takeaway
For the quarter ended June 30 (Q2), Sensient Technologies 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 increased slightly. GAAP earnings per share dropped.
Margins shrank across the board.
Sensient Technologies reported revenue of $378.8 million. The two analysts polled by S&P Capital IQ expected to see sales of $379.6 million on the same basis. GAAP reported sales were 3.0% higher than the prior-year quarter's $367.8 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 $0.74. The three earnings estimates compiled by S&P Capital IQ predicted $0.72 per share. Non-GAAP EPS of $0.74 for Q2 were 2.8% higher than the prior-year quarter's $0.72 per share. GAAP EPS of $0.65 for Q2 were 7.1% lower than the prior-year quarter's $0.70 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 32.4%, 20 basis points worse than the prior-year quarter. Operating margin was 14.6%, 20 basis points worse than the prior-year quarter. Net margin was 8.5%, 100 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $387.2 million. On the bottom line, the average EPS estimate is $0.72.
Next year's average estimate for revenue is $1.50 billion. The average EPS estimate is $2.70.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 74 members out of 79 rating the stock outperform, and five members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 give Sensient Technologies a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sensient Technologies is hold, with an average price target of $47.00.
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