Kraton Performance Polymers
The 10-second takeaway
For the quarter ended June 30 (Q2), Kraton Performance Polymers missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share contracted significantly. GAAP earnings per share shrank significantly.
Margins dropped across the board.
Kraton Performance Polymers tallied revenue of $334.5 million. The eight analysts polled by S&P Capital IQ wanted to see sales of $369.4 million on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $375.8 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 $0.15. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.24 per share. Non-GAAP EPS of $0.15 for Q2 were 69% lower than the prior-year quarter's $0.48 per share. GAAP EPS of $0.12 for Q2 were 68% lower than the prior-year quarter's $0.38 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 17.9%, 190 basis points worse than the prior-year quarter. Operating margin was 3.2%, 330 basis points worse than the prior-year quarter. Net margin was 1.1%, 220 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $358.9 million. On the bottom line, the average EPS estimate is $0.65.
Next year's average estimate for revenue is $1.40 billion. The average EPS estimate is $1.26.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 47 members out of 51 rating the stock outperform, and four members rating it underperform. Among 14 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give Kraton Performance Polymers 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 Kraton Performance Polymers is outperform, with an average price target of $25.25.
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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.