Koppers Holdings Earnings: Here’s Why Investors are Not Excited Now

Koppers Holdings Inc. (NYSE:KOP) 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. Shares are down 0.89%.

Koppers Holdings Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 19.51% to $0.66 in the quarter versus EPS of $0.37 in the year-earlier quarter.

Revenue: Decreased 2.67% to $374.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Koppers Holdings Inc. reported adjusted EPS income of $0.66 per share. By that measure, the company beat the mean analyst estimate of $0.6. It missed the average revenue estimate of $382.47 million.

Quoting Management: Commenting on the results, Walter W. Turner, president and CEO of Koppers, said, “Our fourth quarter results compared favorably to last year’s fourth quarter and on an adjusted basis were the highest fourth quarter earnings in our history as a public company. We achieved significant earnings improvement for the year over our 2011 full year adjusted results despite the continued difficulties in Europe and the additional unexpected charges associated with a pitch tank leak in Australia and a plant outage in The Netherlands. Our global Railroad and Utility Products business enjoyed its best year ever with higher volumes of value added railroad products and utility poles. We continue to see headwinds through 2013 primarily in Europe; however, we are confident that we will achieve our fourth consecutive year of double-digit adjusted earnings growth.”

Key Stats (on next page)…

Revenue decreased 3.35% from $387.9 million in the previous quarter. EPS decreased 19.51% from $0.82 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.75 to a profit $0.79. For the current year, the average estimate has moved down from a profit of $3.32 to a profit of $3.22 over the last ninety days.

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