Polypore International Earnings: Here’s Why the Stock is Falling Now

Polypore International Inc. (NYSE:PPO) 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 7.79%.

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Polypore International Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 42.55% to $0.27 in the quarter versus EPS of $0.47 in the year-earlier quarter.

Revenue: Decreased 5.88% to $163.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Polypore International Inc. reported adjusted EPS income of $0.27 per share. By that measure, the company missed the mean analyst estimate of $0.4. It missed the average revenue estimate of $175.9 million.

Quoting Management: Commenting on the first quarter, Robert B. Toth, President and Chief Executive Officer, said, “Our Separations Media and Transportation and Industrial segments, which represent the majority of Polypore, delivered solid performance in the quarter. Sales in the Electronics and EDVs segment were challenging, with added pressure from customers carefully managing inventory in what was — for many — their fourth fiscal quarter of the year. Following a very weak January and February, we experienced improved order patterns in March and April and anticipate improving performance through the course of the year.”

Key Stats (on next page)…

Revenue decreased 9.29% from $180.24 million in the previous quarter. EPS decreased 37.21% from $0.43 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 $0.6 to a profit $0.48. For the current year, the average estimate has moved down from a profit of $2.33 to a profit of $1.95 over the last ninety days.

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