Stepan Increases Sales but Misses Revenue Estimate
Stepan (NYS: SCL) reported earnings on Feb. 14. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Stepan missed slightly on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share improved significantly.
Gross margins shrank, operating margins increased, net margins grew.
Stepan booked revenue of $444.2 million. The two analysts polled by S&P Capital IQ expected revenue of $452.1 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $360.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.36. The two earnings estimates compiled by S&P Capital IQ forecast $1.46 per share on the same basis. GAAP EPS of $1.17 for Q4 were 54% higher than the prior-year quarter's $0.76 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 13.5%, 50 basis points worse than the prior-year quarter. Operating margin was 4.8%, 90 basis points better than the prior-year quarter. Net margin was 3.0%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $484.9 million. On the bottom line, the average EPS estimate is $2.13.
Next year's average estimate for revenue is $2.09 billion. The average EPS estimate is $8.90.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 56 members out of 62 rating the stock outperform, and six members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Stepan a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Stepan is buy, with an average price target of $97.00.
Over the decades, small-cap stocks, like Stepan have provided 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: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Stepan 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.