PH Glatfelter Beats on EPS but GAAP Results Lag

PH Glatfelter (NYS: GLT) reported earnings on Feb. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), PH Glatfelter met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue improved and GAAP earnings per share dropped significantly.

Gross margins expanded, operating margins increased, net margins dropped.

Revenue details
PH Glatfelter booked revenue of $393.4 million. The one analyst polled by S&P Capital IQ predicted revenue of $398.6 million. Sales were 4.1% higher than the prior-year quarter's $378.0 million.


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

EPS details
Non-GAAP EPS came in at $0.32. The two earnings estimates compiled by S&P Capital IQ predicted $0.27 per share on the same basis. GAAP EPS of $0.22 for Q4 were 31% lower than the prior-year quarter's $0.32 per share.


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 13.6%, 50 basis points better than the prior-year quarter. Operating margin was 5.9%, 110 basis points better than the prior-year quarter. Net margin was 2.5%, 150 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $403.2 million. On the bottom line, the average EPS estimate is $0.39.

Next year's average estimate for revenue is $1.60 billion. The average EPS estimate is $1.25.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 185 members out of 188 rating the stock outperform, and three members rating it underperform. Among 61 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 60 give PH Glatfelter 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 PH Glatfelter is buy, with an average price target of $19.00.

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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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