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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