Fool Cheat Sheet: Sappi Limited Earnings
Sappi Limited (NYS: SPP) reported earnings on Feb. 8. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Sappi Limited missed estimates on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share improved.
Gross margins shrank, operating margins dropped, net margins grew.
Sappi Limited logged revenue of $1.59 billion. The two analysts polled by S&P Capital IQ foresaw sales of $1.74 billion on the same basis. GAAP reported sales were 15% lower than the prior-year quarter's $1.87 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.09. The one earnings estimate compiled by S&P Capital IQ averaged $0.00 per share. GAAP EPS of $0.09 for Q1 were 29% higher than the prior-year quarter's $0.07 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 13.1%, 10 basis points worse than the prior-year quarter. Operating margin was 6.8%, 40 basis points worse than the prior-year quarter. Net margin was 2.8%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.66 billion. On the bottom line, the average EPS estimate is -$0.02.
Next year's average estimate for revenue is $6.86 billion. The average EPS estimate is $0.38.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 59 members out of 69 rating the stock outperform, and 10 members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give Sappi Limited a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sappi Limited is hold, with an average price target of $3.15.
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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.