Rockwood Holdings Beats on EPS but GAAP Results Lag

Rockwood Holdings (NYSE: ROC  ) reported earnings on Feb. 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Rockwood Holdings missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share shrank significantly.

Gross margins expanded, operating margins grew, net margins contracted.

Revenue details
Rockwood Holdings recorded revenue of $814.4 million. The seven analysts polled by S&P Capital IQ looked for a top line of $867.1 million on the same basis. GAAP reported sales were 2.0% higher than the prior-year quarter's $798.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.91. The seven earnings estimates compiled by S&P Capital IQ predicted $0.79 per share on the same basis. GAAP EPS of $0.79 for Q4 were 43% lower than the prior-year quarter's $1.39 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 35.7%, 440 basis points better than the prior-year quarter. Operating margin was 15.1%, 450 basis points better than the prior-year quarter. Net margin was 7.7%, 600 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $950.2 million. On the! bottom line, the average EPS estimate is $1.02.

Next year's average estimate for revenue is $3.91 billion. The average EPS estimate is $4.27.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 329 members out of 346 rating the stock outperform, and 17 members rating it underperform. Among 135 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 133 give Rockwood Holdings a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rockwood Holdings is outperform, with an average price target of $54.43.

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