OMNOVA Solutions Beats Up on Analysts Yet Again
OMNOVA Solutions (NYS: OMN) reported earnings on Jan. 27. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Nov. 30 (Q4), OMNOVA Solutions beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share shrank to a loss.
Gross margins increased, operating margins grew, and net margins shrank.
OMNOVA Solutions reported revenue of $301.4 million. The two analysts polled by S&P Capital IQ expected net sales of $298.1 million. Sales were 45% higher than the prior-year quarter's $208.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.14. The four earnings estimates compiled by S&P Capital IQ forecast $0.06 per share on the same basis. GAAP EPS were -$0.23 for Q4 versus $1.75 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 18.5%, 180 basis points better than the prior-year quarter. Operating margin was 7.0%, 470 basis points better than the prior-year quarter. Net margin was -3.5%, 4,270 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $262.8 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $1.23 billion. The average EPS estimate is $0.58.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 150 members out of 165 rating the stock outperform, and 15 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give OMNOVA Solutions a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on OMNOVA Solutions is buy, with an average price target of $6.85.
Over the decades, small-cap stocks like OMNOVA Solutions have produced 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: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add OMNOVA Solutions to My Watchlist.
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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.