Buckeye Technologies Beats Estimates Yet Again

Seth Jayson, The Motley Fool
Updated

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.

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At the time thisarticle 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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