Innophos Holdings Earnings: Here’s Why Investors are Not Happy Now

Innophos Holdings Inc (NASDAQ:IPHS) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.15%.

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Innophos Holdings Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 33.33% to $0.6 in the quarter versus EPS of $0.90 in the year-earlier quarter.

Revenue: Decreased 6.05% to $214.44 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Innophos Holdings Inc reported adjusted EPS income of $0.6 per share. By that measure, the company missed the mean analyst estimate of $0.79. It missed the average revenue estimate of $229.7 million.

Quoting Management: Randy Gress, CEO of Innophos, commented on the results, “Our results this quarter, which were not in-line with our long-term objectives, reflected lower demand for some of our higher margin products and operational disruptions at our Mexico facility. Despite these challenges, I remain confident that we are achieving good progress against our strategic growth initiatives. We benefited from strong performance within our nutrition business where our recent acquisitions contributed 5% of overall growth. Our low sodium product line also continued to demonstrate success in the marketplace, doubling sales over the prior year period. In addition, we achieved record export sales from the U.S., including strong results in Asia Pacific, which is particularly encouraging given the investments we have made in China.”

Key Stats (on next page)…

Revenue increased 2.71% from $208.78 million in the previous quarter. EPS decreased 3.23% from $0.62 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.97 to a profit $0.96. For the current year, the average estimate has moved down from a profit of $3.81 to a profit of $3.69 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)