Polypore International Beats on EPS, but GAAP Results Lag

Seth Jayson, The Motley Fool
Updated

Polypore International (NYS: PPO) reported earnings on May 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Polypore International met expectations on revenues and beat expectations on earnings per share.

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


Margins dropped across the board.

Revenue details
Polypore International reported revenue of $173.7 million. The 12 analysts polled by S&P Capital IQ foresaw a top line of $173.4 million on the same basis. GAAP reported sales were 6.4% lower than the prior-year quarter's $185.7 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.47. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.44 per share. GAAP EPS of $0.40 for Q1 were 27% lower than the prior-year quarter's $0.55 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 40.9%, 190 basis points worse than the prior-year quarter. Operating margin was 21.4%, 490 basis points worse than the prior-year quarter. Net margin was 10.8%, 300 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $192.9 million. On the bottom line, the average EPS estimate is $0.59.

Next year's average estimate for revenue is $809.1 million. The average EPS estimate is $2.44.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 242 members out of 265 rating the stock outperform, and 23 members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 57 give Polypore International a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Polypore International is outperform, with an average price target of $49.36.

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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. He is the co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Polypore International. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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