Kraton Performance Polymers Misses Where It Counts
Kraton Performance Polymers (NYS: KRA) reported earnings on April 30. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Kraton Performance Polymers beat expectations on revenues and missed estimates on earnings per share.
Compared with the prior-year quarter, revenue increased significantly and GAAP earnings per share contracted significantly.
Margins dropped across the board.
Kraton Performance Polymers notched revenue of $408.3 million. The seven analysts polled by S&P Capital IQ anticipated revenue of $368.9 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $344.8 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 $0.49. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.64 per share. GAAP EPS of $0.50 for Q1 were 26% lower than the prior-year quarter's $0.68 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 18.5%, 670 basis points worse than the prior-year quarter. Operating margin was 6.3%, 530 basis points worse than the prior-year quarter. Net margin was 4.0%, 230 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $430.5 million. On the bottom line, the average EPS estimate is $1.17.
Next year's average estimate for revenue is $1.55 billion. The average EPS estimate is $3.00.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 59 members out of 62 rating the stock outperform, and four members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give Kraton Performance Polymers a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kraton Performance Polymers is outperform, with an average price target of $34.44.
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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. He is the 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 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.