Solutia Beats on EPS But GAAP Results Lag
Solutia (NYS: SOA) reported earnings on April 27. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Solutia missed estimates on revenue but beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share contracted significantly.
Margins dropped across the board.
Solutia reported revenue of $498 million. The four analysts polled by S&P Capital IQ expected to see revenue of $539.6 million on the same basis. GAAP reported sales were 2.2% lower than the prior-year quarter's $509 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 $0.55. The five earnings estimates compiled by S&P Capital IQ anticipated $0.52 per share. GAAP EPS of $0.43 for Q1 were 20% lower than the prior-year quarter's $0.54 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 31.7%, 10 basis points worse than the prior-year quarter. Operating margin was 15.3%, 430 basis points worse than the prior-year quarter. Net margin was 10.6%, 220 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $571.5 million. On the bottom line, the average EPS estimate is $0.58.
Next year's average estimate for revenue is $2.21 billion. The average EPS estimate is $2.19.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 91 members rating the stock outperform and 12 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give Solutia a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Solutia is hold, with an average price target of $27.04.
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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.
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