Does the Street Have Rentech Figured Out?

Seth Jayson, The Motley Fool
Updated

Rentech (AMEX: RTK) is expected to report Q2 earnings this week. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Rentech's revenues will grow 10.1% and EPS will improve 33.3%.

The average estimate for revenue is $81.9 million. On the bottom line, the average EPS estimate is $0.04.


Revenue details
Last quarter, Rentech reported revenue of $38.6 million. GAAP reported sales were 55% higher than the prior-year quarter's $24.9 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
Last quarter, EPS came in at -$0.01. GAAP EPS were -$0.01 for Q1 compared to -$0.03 per share for the prior-year quarter.

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

Recent performance
For the preceding quarter, gross margin was 58.7%, 1,780 basis points better than the prior-year quarter. Operating margin was 15.7%, 3,360 basis points better than the prior-year quarter. Net margin was -8.5%, 2,180 basis points better than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $214.4 million. The average EPS estimate is $0.03.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 350 members out of 404 rating the stock outperform, and 54 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Rentech a green thumbs-up, and 20 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rentech is outperform, with an average price target of $3.36.

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The article Does the Street Have Rentech Figured Out? originally appeared on Fool.com.

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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