The 10-second takeaway
For the quarter ended June 30 (Q2), Schweitzer-Mauduit International met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Margins grew across the board.
Schweitzer-Mauduit International booked revenue of $196.5 million. The three analysts polled by S&P Capital IQ hoped for sales of $196.0 million on the same basis. GAAP reported sales were 1.2% lower than the prior-year quarter's $198.8 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 $0.95. The three earnings estimates compiled by S&P Capital IQ averaged $0.88 per share. Non-GAAP EPS of $0.95 for Q2 were 16% higher than the prior-year quarter's $0.82 per share. GAAP EPS of $0.84 for Q2 were 27% higher than the prior-year quarter's $0.66 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 33.0%, 160 basis points better than the prior-year quarter. Operating margin was 21.8%, 130 basis points better than the prior-year quarter. Net margin was 13.5%, 290 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $198.4 million. On the bottom line, the average EPS estimate is $0.98.
Next year's average estimate for revenue is $787.1 million. The average EPS estimate is $3.80.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 92 members out of 103 rating the stock outperform, and 11 members rating it underperform. Among 29 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 give Schweitzer-Mauduit International 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 Schweitzer-Mauduit International is hold, with an average price target of $46.50.
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