A. Schulman Crushes Estimates
A. Schulman (NAS: SHLM) reported earnings on Jan. 5. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Nov. 30 (Q1), A. Schulman whiffed on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew, and earnings per share improved significantly.
Gross margins contracted, operating margins increased, net margins expanded.
A. Schulman reported revenue of $517 million. The two analysts polled by S&P Capital IQ expected to see a top line of $582 million. Sales were 4.4% higher than the prior-year quarter's $495 million
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.52. The four earnings estimates compiled by S&P Capital IQ predicted $0.42 per share on the same basis. GAAP EPS of $0.46 for Q1 were 59% higher than the prior-year quarter's $0.29 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 13.4%, 60 basis points worse than the prior-year quarter. Operating margin was 4.3%, 80 basis points better than the prior-year quarter. Net margin was 2.6%, 70 basis points better than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $514 million. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $2.2 billion. The average EPS estimate is $2.11.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 70 members out of 79 rating the stock outperform, and 10 members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give A. Schulman a green thumbs-up, and none give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on A. Schulman is outperform, with an average price target of $30.
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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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