Kraton Performance Polymers Inc. (NYSE:KRA) 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.
Kraton Performance Polymers Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 86% to $0.07 in the quarter versus EPS of $0.50 in the year-earlier quarter.
Revenue: Decreased 16.7% to $340.11 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Kraton Performance Polymers Inc. reported adjusted EPS income of $0.07 per share. By that measure, the company missed the mean analyst estimate of $0.28. It missed the average revenue estimate of $363.22 million.
Quoting Management: “Our first quarter 2013 sales volume was 78 kilotons, an increase of 16% compared to the fourth quarter 2012, but down 13% from the record 90 kilotons we reported in the first quarter 2012. Sales volume in Q1 2012 was atypical, particularly in our Paving & Roofing end use, in which demand reflected aggressive building of inventories following the butadiene-driven destocking in the fourth quarter of 2011, a rapid increase in butadiene prices, which were up over 50% from December 2011 to April 2012, and an early start to the paving season due to favorable weather,” said Kevin M. Fogarty, Kraton’s President and Chief Executive Officer.
Key Stats (on next page)…
Revenue increased 14.74% from $296.42 million in the previous quarter. EPS increased to $0.07 in the quarter versus EPS of $-0.88 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 $0.86 to a profit $0.69. For the current year, the average estimate has moved down from a profit of $2.55 to a profit of $1.97 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)