OMNOVA Solutions Inc. (NYSE:OMN) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
OMNOVA Solutions Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 0% to $0.16 in the quarter versus EPS of $0.16 in the year-earlier quarter.
Revenue: Decreased 11.93% to $270.8 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: OMNOVA Solutions Inc. reported adjusted EPS income of $0.16 per share. By that measure, the company beat the mean analyst estimate of $0.15. It missed the average revenue estimate of $298 million.
Quoting Management: “As we expected, Adjusted Segment Operating Profit results in our second quarter of 2013 improved significantly on a sequential basis as compared to the first quarter. This improvement was broad-based across most Performance Chemicals and Engineered Surfaces product lines. Higher volumes, cost reduction actions and a favorable mix of business drove the sequential improvement. As previously disclosed, we lost volume in coated paper chemicals late last year, which negatively impacted results in the first half of 2013. However, we have won new commitments that are expected to offset much of the lost volume. Product shipments began to ramp up late in the second quarter with full conversion expected later in the year,” said Kevin McMullen, OMNOVA Solutions’ Chairman and Chief Executive Officer.
Key Stats (on next page)…