PolyOne Beats on EPS But GAAP Results Lag
May 2nd 2013 5:09PM
Updated May 2nd 2013 5:12PM
PolyOne (NYS: POL) reported earnings on May 1. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), PolyOne met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share grew. GAAP earnings per share contracted significantly.
Gross margins expanded, operating margins dropped, net margins shrank.
PolyOne reported revenue of $801.1 million. The five analysts polled by S&P Capital IQ wanted to see revenue of $808.1 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.31. The eight earnings estimates compiled by S&P Capital IQ predicted $0.26 per share. Non-GAAP EPS of $0.31 for Q1 were 6.9% higher than the prior-year quarter's $0.29 per share. GAAP EPS of $0.16 for Q1 were 27% lower than the prior-year quarter's $0.22 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 20.3%, 230 basis points better than the prior-year quarter. Operating margin was 5.0%, 70 basis points worse than the prior-year quarter. Net margin was 1.9%, 70 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.11 billion. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $3.94 billion. The average EPS estimate is $1.17.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 170 members out of 185 rating the stock outperform, and 15 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give PolyOne a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PolyOne is outperform, with an average price target of $27.33.
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The article PolyOne Beats on EPS But GAAP Results Lag 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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. 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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