Rockwood Holdings Earnings: Everything You Must Know Now

Rockwood Holdings Inc. (NYSE:ROC) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

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Rockwood Holdings Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 48.35% to $0.47 in the quarter versus EPS of $0.91 in the year-earlier quarter.

Revenue: Rose 1.79% to $829 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Rockwood Holdings Inc. reported adjusted EPS income of $0.47 per share. By that measure, the company missed the mean analyst estimate of $0.48. It beat the average revenue estimate of $790.85 million.

Quoting Management:Seifi Ghasemi, Chairman and Chief Executive Officer, commented, “Our two core businesses, Lithium and Surface Treatment, as well as Advanced Ceramics, had a satisfactory performance in the fourth quarter, each with higher Adjusted EBITDA versus last year. The results for our Performance Additives segment were negatively impacted by lower oil and natural gas drilling activity in North America. Our TiO2 business did not perform well due to lower prices and higher raw material costs. As a result of our continued focus on cash, we generated $87 million of free cash in the fourth quarter and nearly $170 million in the second half of 2012.”

Key Stats (on next page)…

Revenue decreased 3.92% from $862.8 million in the previous quarter. EPS decreased 50% from $0.94 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 $0.89 to a profit $0.86. For the current year, the average estimate has moved down from a profit of $3.97 to a profit of $3.92 over the last ninety days.

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