Sensient Technologies Beats on Both Top and Bottom Lines
Sensient Technologies (NYS: SXT) reported earnings on April 20. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Sensient Technologies beat expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew.
Margins expanded across the board.
Sensient Technologies tallied revenue of $365.7 million. The two analysts polled by S&P Capital IQ expected a top line of $358.1 million on the same basis. GAAP reported sales were 4.6% higher than the prior-year quarter's $349.7 million.
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 $0.58. The three earnings estimates compiled by S&P Capital IQ averaged $0.57 per share. GAAP EPS of $0.58 for Q1 were 9.4% higher than the prior-year quarter's $0.53 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 31.5%, 70 basis points better than the prior-year quarter. Operating margin was 12.7%, 20 basis points better than the prior-year quarter. Net margin was 7.9%, 30 basis points better than the prior-year quarter.
On the bottom line, the average EPS estimate is $0.70.
Next year's average estimate for revenue is $1.49 billion. The average EPS estimate is $2.55.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 74 members out of 79 rating the stock outperform, and five members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give Sensient Technologies 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 Sensient Technologies is hold, with an average price target of $40.50.
Over the decades, small-cap stocks like Sensient Technologies have produced 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: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Sensient Technologies 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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.