Olin Beats Expectations but Takes a Step Back Anyway
Olin (NYS: OLN) reported earnings on Jan. 30. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Olin beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly, and GAAP earnings per share improved significantly.
Margins increased across the board.
Olin booked revenue of $445.8 million. The eight analysts polled by S&P Capital IQ anticipated sales of $417.9 million. Sales were 16% higher than the prior-year quarter's $385.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.25. The nine earnings estimates compiled by S&P Capital IQ averaged $0.22 per share on the same basis. GAAP EPS of $0.23 for Q4 were much higher than the prior-year quarter's $0.02 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 17.4%, 130 basis points better than the prior-year quarter. Operating margin was 9.2%, 190 basis points better than the prior-year quarter. Net margin was 4.2%, 370 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $485.1 million. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $2.01 billion. The average EPS estimate is $1.93.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 552 members out of 568 rating the stock outperform, and 16 members rating it underperform. Among 138 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 137 give Olin a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Olin is hold, with an average price target of $23.89.
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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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