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Huntsman Goes Red

Tuesday - 4/30/2013, 2:00am  ET

Huntsman reported earnings on April 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Huntsman met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped to a loss.

Margins dropped across the board.

Revenue details
Huntsman booked revenue of $2.70 billion. The eight analysts polled by S&P Capital IQ expected to see revenue of $2.71 billion on the same basis. GAAP reported sales were 7.2% lower than the prior-year quarter's $2.91 billion.

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 $0.19. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.18 per share. Non-GAAP EPS of $0.19 for Q1 were 74% lower than the prior-year quarter's $0.74 per share. (The prior-year quarter included -$0.02 per share in earnings from discontinued operations.) GAAP EPS were -$0.11 for Q1 versus $0.68 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 12.9%, 600 basis points worse than the prior-year quarter. Operating margin was 3.5%, 630 basis points worse than the prior-year quarter. Net margin was -0.9%, 650 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $2.92 billion. On the bottom line, the average EPS estimate is $0.48.

Next year's average estimate for revenue is $11.28 billion. The average EPS estimate is $1.67.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 628 members out of 656 rating the stock outperform, and 28 members rating it underperform. Among 188 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 185 give Huntsman a green thumbs-up, and three 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 $17.78.

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This article was originally published as Huntsman Goes Redon Fool.com

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