OM Group Earnings: Here’s Why Investors are Excited Now
OM Group Inc. (NYSE:OMG) 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 up 1.68%.
OM Group Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 38.98% to $0.36 in the quarter versus EPS of $0.59 in the year-earlier quarter.
Revenue: Decreased 36.08% to $279 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: OM Group Inc. reported adjusted EPS income of $0.36 per share. By that measure, the company beat the mean analyst estimate of $0.24. It missed the average revenue estimate of $292.85 million.
Quoting Management: “Second quarter results demonstrate continued strategic and operating progress,” said Joe Scaminace, Chairman and Chief Executive Officer of OM Group, Inc. “Profitability was in-line with our expectations and included $3 million of cost reduction benefits. We simplified our portfolio by divesting UPC and further strengthened our balance sheet by repaying our debt. And we returned $9 million to shareholders in the form of share repurchases. We have delivered a very successful first half of the year.”
Key Stats (on next page)…
Revenue decreased 23.4% from $364.25 million in the previous quarter. EPS increased 140% from $0.15 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 $0.41 to a profit $0.37. For the current year, the average estimate has moved up from a profit of $1.03 to a profit of $1.06 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)