Buckeye Technologies Beats Estimates Yet Again

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Buckeye Technologies (NYS: BKI) reported earnings on Jan. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Buckeye Technologies missed on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded, and earnings per share shrank to a loss.

Gross margins improved, operating margins improved, and net margins dropped.

Revenue details
Buckeye Technologies booked revenue of $227 million. The four analysts polled by S&P Capital IQ looked for sales of $239 million. Sales were 8.4% higher than the prior-year quarter's $210 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.69. The five earnings estimates compiled by S&P Capital IQ forecast $0.66 per share on the same basis. GAAP EPS were -$0.14 for Q2 compared to $0.42 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 24.0%, 470 basis points better than the prior-year quarter. Operating margin was 18.8%, 540 basis points better than the prior-year quarter. Net margin was -2.4%, 1,050 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $251 million. On the bottom line, the average EPS estimate is $0.76.

Next year's average estimate for revenue is $990 million. The average EPS estimate is $2.95.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 166 members out of 172 rating the stock outperform, and six members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 give Buckeye Technologies 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 Buckeye Technologies is buy, with an average price target of $35.75.

Over the decades, small-cap stocks, like Buckeye Technologies have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.

At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.

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