KapStone Paper and Packaging
The 10-second takeaway
For the quarter ended June 30 (Q2), KapStone Paper and Packaging met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share increased.
Gross margins expanded, operating margins were steady, net margins expanded.
KapStone Paper and Packaging reported revenue of $326.3 million. The seven analysts polled by S&P Capital IQ expected revenue of $326.6 million on the same basis. GAAP reported sales were 6.6% higher than the prior-year quarter's $306.3 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 $0.44. The five earnings estimates compiled by S&P Capital IQ predicted $0.43 per share. GAAP EPS of $0.44 for Q2 were 13% 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 30.8%, 50 basis points better than the prior-year quarter. Operating margin was 10.6%, much about the same as the prior-year quarter. Net margin was 6.4%, 40 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $445.3 million. On the bottom line, the average EPS estimate is $0.79.
Next year's average estimate for revenue is $1.68 billion. The average EPS estimate is $2.51.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 135 members out of 148 rating the stock outperform, and 13 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give KapStone Paper and Packaging a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on KapStone Paper and Packaging is outperform, with an average price target of $44.33.
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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. 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.