Huntsman Beats on the Top Line

Huntsman (NYSE: HUN  ) reported earnings on Feb. 12. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share contracted to a loss.

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

Revenue details
Huntsman booked revenue of $2.62 billion. The eight analysts polled by S&P Capital IQ foresaw a top line of $2.49 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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

EPS details
EPS came in at $0.24. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.24 per share. GAAP EPS were -$0.17 for Q4 versus $0.44 per share for the prior-year quarter.

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 16.0%, 120 basis points better than the prior-year quarter. Operating margin was 4.4%, 150 basis points worse than the prior-year quarter. Net margin was -1.5%, 550 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.72 billion. On the bottom line, the average EPS estimate is $0.40.

Next year's average estimate for revenue is $11.12 billion. The average EPS estimate is $1.96.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 633 members out of 662 rating the stock outperform, and 29 members rating it underperform. Among 208 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 206 give Huntsman 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 Huntsman is hold, with an average price target of $17.11.

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