KMG Chemicals (NYSE:KMG) 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.
KMG Chemicals Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 24.24% to $0.25 in the quarter versus EPS of $0.33 in the year-earlier quarter.
Revenue: Decreased 10.03% to $59.9 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: KMG Chemicals reported adjusted EPS income of $0.25 per share. By that measure, the company beat the mean analyst estimate of $0.22. It missed the average revenue estimate of $77.75 million.
Quoting Management: Neal Butler, President and CEO of KMG, commented, “Although the operating environment in the third quarter remained challenging, we were encouraged to see sales volumes strengthen in both our Electronic Chemicals and Wood Treating businesses as compared to the second quarter of fiscal 2013, particularly in the last two months of the quarter. We continued to focus on controlling operating expenses and achieved a $1.8 million, or 12.8%, reduction in total operating expenses over the prior year’s third quarter. Overall, we reported fiscal third quarter diluted earnings per share of $0.25, which was slightly higher than our expectations.”
Key Stats (on next page)…
Revenue increased 5.16% from $56.96 million in the previous quarter. EPS increased 78.57% from $0.14 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 $0.29 to a profit $0.27. For the current year, the average estimate has moved down from a profit of $1.15 to a profit of $1.02 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)