Kraton Performance Polymers Earnings: Here’s Why the Stock is Falling Now

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. Shares are down 2.40%.

Kraton Performance Polymers Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 68.09% to $0.15 in the quarter versus EPS of $0.47 in the year-earlier quarter.

Revenue: Decreased 10.97% to $334.54 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Kraton Performance Polymers Inc. reported adjusted EPS income of $0.15 per share. By that measure, the company missed the mean analyst estimate of $0.25. It missed the average revenue estimate of $365.26 million.

Quoting Management: “Our second quarter 2013 sales volume of 77.5 kilotons was essentially unchanged in comparison to the second quarter 2012, and was below our expectations, principally due to a slower than anticipated start to the paving and roofing season in May following weather related delays in April. Although we continue to see pockets of softness, sales momentum in general accelerated towards the end of the quarter. Moreover, our Advanced Materials end use saw a 3% year-on-year increase in sales volume, which served to offset modest sales volume decreases in our Adhesives, Sealants & Coatings and CariflexTM end use markets,” said Kevin M. Fogarty, Kraton’s President and Chief Executive Officer.

Key Stats (on next page)…

Revenue decreased 0% from $0 in the previous quarter. EPS increased 114.29% from $0.07 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 $0.77 to a profit $0.64. For the current year, the average estimate has moved down from a profit of $1.86 to a profit of $1.2 over the last ninety days.

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