Ashland Beats on Both Top and Bottom Lines
Ashland (NYS: ASH) reported earnings on May 4. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q2), Ashland beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share contracted significantly.
Margins dropped across the board.
Ashland booked revenue of $2.10 billion. The seven analysts polled by S&P Capital IQ anticipated revenue of $2.07 billion on the same basis. GAAP reported sales were 34% higher than the prior-year quarter's $1.56 billion.
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 $1.52. The nine earnings estimates compiled by S&P Capital IQ predicted $1.38 per share. GAAP EPS of $1.11 for Q2 were 82% lower than the prior-year quarter's $6.05 per share. (The prior-year quarter included $3.79 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 27.8%, 230 basis points worse than the prior-year quarter. Operating margin was 10.3%, 630 basis points worse than the prior-year quarter. Net margin was 4.2%, 2,690 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.22 billion. On the bottom line, the average EPS estimate is $1.69.
Next year's average estimate for revenue is $8.44 billion. The average EPS estimate is $5.92.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ashland is outperform, with an average price target of $74.50.
- Add Ashland 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.