A. Schulman beats by $0.08, beats on revs; guides Q4 EPS below consensus
Reports Q3 (May) earnings of $0.74 per share, $0.08 better than the Capital IQ Consensus Estimate of $0.66; revenues rose 17.7% year/year to $645.7 mln vs the $632.79 mln consensus.
Co issues downside guidance for Q4, sees EPS of $.61-0.66 vs. $0.67 Capital IQ Consensus Estimate.
"I am pleased with our excellent third-quarter financial results which reflect continued demand in our key end markets as well as contributions from our recent acquisitions. Unlike last year's unusual third quarter, I believe we have returned to our typical historic pattern where our third quarter is the strongest. While our results are strong, we will continue to look for operational efficiencies, drive product mix improvement and seek acquisitions that expand our markets and provide profitable growth. We are pleased with our global organic growth rate, particularly in Europe where improved mix and growing automotive sales have bolstered our quarter and nine-month results. Globally, we continue to achieve double-digit growth in our custom performance color product family. In Europe, Middle East and Africa (EMEA) we continue to see steady growth in other key markets such as packaging. In the Americas, we saw a similar pattern with strength in our engineered plastics product family as a result of our acquisitions, and we had significant contributions from our specialty powders business. In Asia Pacific (APAC), we continue to improve volume and sales by executing our growth activities aided by our recent Perrite acquisition. Globally, our recent acquisitions contributed to a 10.2% quarter-over-quarter increase in net sales. We expect this growth rate to continue now that we have closed on the acquisition of Ferro Corporation's specialty plastics business."
Co issues downside guidance for Q4, sees EPS of $.61-0.66 vs. $0.67 Capital IQ Consensus Estimate.
"I am pleased with our excellent third-quarter financial results which reflect continued demand in our key end markets as well as contributions from our recent acquisitions. Unlike last year's unusual third quarter, I believe we have returned to our typical historic pattern where our third quarter is the strongest. While our results are strong, we will continue to look for operational efficiencies, drive product mix improvement and seek acquisitions that expand our markets and provide profitable growth. We are pleased with our global organic growth rate, particularly in Europe where improved mix and growing automotive sales have bolstered our quarter and nine-month results. Globally, we continue to achieve double-digit growth in our custom performance color product family. In Europe, Middle East and Africa (EMEA) we continue to see steady growth in other key markets such as packaging. In the Americas, we saw a similar pattern with strength in our engineered plastics product family as a result of our acquisitions, and we had significant contributions from our specialty powders business. In Asia Pacific (APAC), we continue to improve volume and sales by executing our growth activities aided by our recent Perrite acquisition. Globally, our recent acquisitions contributed to a 10.2% quarter-over-quarter increase in net sales. We expect this growth rate to continue now that we have closed on the acquisition of Ferro Corporation's specialty plastics business."