Polypore International Inc. Earnings: Revenue Slips, Net Income Declines

Polypore International Inc. (NYSE:PPO) reported its results for the first quarter. Polypore International is a global technology filtration company that develops, manufactures, and markets specialized microporous membranes used in separation and filtration processes.

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Polypore International Earnings Cheat Sheet for the First Quarter

Results: Net income for Polypore International Inc. fell to $18.8 million (40 cents per share) vs. $25.7 million (55 cents per share) a year earlier. This is a decline of 26.8% from the year-earlier quarter.

Revenue: Fell 6.4% to $173.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Polypore International Inc. reported adjusted net income of 47 cents per share. By that measure, the company beat the mean estimate of 37 cents per share. Analysts were expecting revenue of $173.4 million.

Quoting Management: “Results in the quarter were consistent with the outlook we discussed in February. We expect second quarter results in the lithium separator business to be similar to first quarter, turning stronger as we move into the second half of the year. Additionally, in the second quarter, we expect sequential improvement in our other businesses,” said Robert B. Toth, President and Chief Executive Officer. “While we are not satisfied with current results, the long-term trends in all of our businesses remain positive and we are confident in the investments we have made to drive growth.”

Key Stats:

Last quarter’s profit decrease ends a four-quarter streak of profit increases. In the fourth quarter of the last fiscal year, net income rose 49.3% from the year earlier, while the figure increased 90.8% in the third quarter of the last fiscal year, 85.1% in the second quarter of the last fiscal year and 46.3% in the first quarter of the last fiscal year.

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the second quarter of the last fiscal year, which saw revenue rise 30.8%.

The company has beaten estiamtes for two quarters in a row. In the fourth quarter of the last fiscal year, it topped expectations with net income of 54 cents versus a mean estimate of net income of 52 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 66 cents a share to 52 cents over the last ninety days. At $2.21 per share, the average estimate for the fiscal year has fallen from $2.66 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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