Ashland Beats Up on Analysts Yet Again
Ashland (NYS: ASH) reported earnings on Jan. 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Ashland missed slightly on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly, and earnings per share contracted significantly.
Gross margins dropped, operating margins expanded, net margins dropped.
Ashland chalked up revenue of $1.9 billion. The four analysts polled by S&P Capital IQ expected revenue of $2.0 billion. Sales were 35% higher than the prior-year quarter's $1.4 billion
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.20. The nine earnings estimates compiled by S&P Capital IQ forecast $0.99 per share on the same basis. GAAP EPS of $0.77 for Q1 were 29% lower than the prior-year quarter's $1.09 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 27.0%, 90 basis points worse than the prior-year quarter. Operating margin was 6.7%, 10 basis points better than the prior-year quarter. Net margin was 3.2%, 290 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.1 billion. On the bottom line, the average EPS estimate is $1.36.
Next year's average estimate for revenue is $8.6 billion. The average EPS estimate is $5.45.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ashland is outperform, with an average price target of $68.89.
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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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