Libbey Crushes Earnings Estimates

Seth Jayson, The Motley Fool
Updated

Libbey (AMEX: LBY) reported earnings on July 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Libbey missed estimates on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share dropped to a loss.


Gross margins grew, operating margins increased, net margins contracted.

Revenue details
Libbey chalked up revenue of $210.0 million. The two analysts polled by S&P Capital IQ wanted to see revenue of $218.5 million on the same basis. GAAP reported sales were 2.3% lower than the prior-year quarter's $214.9 million.

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 $0.98. The two earnings estimates compiled by S&P Capital IQ anticipated $0.48 per share. GAAP EPS were -$0.49 for Q2 against $0.74 per share for the prior-year quarter.

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 26.8%, 360 basis points better than the prior-year quarter. Operating margin was 13.8%, 250 basis points better than the prior-year quarter. Net margin was -4.8%, 1,200 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $213.3 million. On the bottom line, the average EPS estimate is $0.44.

Next year's average estimate for revenue is $844.6 million. The average EPS estimate is $1.17.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 43 members out of 61 rating the stock outperform, and 18 members rating it underperform. Among 13 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give Libbey a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Libbey is outperform, with an average price target of $21.00.

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The article Libbey Crushes Earnings Estimates 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 the co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. 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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