The 10-second takeaway
For the quarter ended June 30 (Q2), Axiall met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Margins grew across the board.
Axiall booked revenue of $1.27 billion. The nine analysts polled by S&P Capital IQ hoped for a top line of $1.27 billion on the same basis. GAAP reported sales were 47% higher than the prior-year quarter's $867.7 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 $1.19. The 10 earnings estimates compiled by S&P Capital IQ forecast $1.16 per share. Non-GAAP EPS of $1.19 for Q2 were 102% higher than the prior-year quarter's $0.59 per share. GAAP EPS of $1.03 for Q2 were 164% higher than the prior-year quarter's $0.39 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 18.2%, 820 basis points better than the prior-year quarter. Operating margin was 10.5%, 650 basis points better than the prior-year quarter. Net margin was 5.7%, 410 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.26 billion. On the bottom line, the average EPS estimate is $1.35.
Next year's average estimate for revenue is $4.76 billion. The average EPS estimate is $4.19.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 14 members out of 16 rating the stock outperform, and two members rating it underperform. Among seven CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give Axiall a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Axiall is outperform, with an average price target of $55.78.
Looking for alternatives to Axiall? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Axiall to My Watchlist.
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. 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.