UPDATE: A. Schulman (SHLM) Tops Q2 EPS by 1c, Revenue Comes in Light

A. Schulman (NASDAQ: SHLM) reported Q2 EPS of $0.31, $0.01 better than the analyst estimate of $0.30. Revenue for the quarter came in at $568.7 million versus the consensus estimate of $581.44 million.

Business Outlook

The Company's initial annual guidance included an assumed Euro rate of $1.13. While the Company does not generally adjust guidance around currency changes over the course of the fiscal year, if the Euro remains at current levels of approximately $1.06 for the remainder of the fiscal year along with no changes in other world currencies, the full fiscal year negative impact of foreign currency translation would be approximately $0.15 per diluted share and would adversely impact sales by approximately $90 million and EBITDA by approximately $8 million.

Excluding potential 2017 currency translation as noted above, the Company is maintaining its previously stated fiscal 2017 operating targets of $2.5 billion to $2.6 billion in sales, adjusted EBITDA of $225 million to $230 million, and a return on invested capital of 11 percent to 12.5 percent. The outlook for adjusted earnings per diluted share remains in the range of $2.08 to $2.18 on an operating basis.

Gingo stated, "As a result of potential foreign currency headwind, we are intensely focused on continuing to execute our strategy with a sense of urgency. We must deliver tangible benefits from our strengthened global sales organization and aggressively commercialize value-added products in our expanding innovation pipeline."

Gingo noted that the Company is focused on increasing sales in high-demand, high-margin specialized growth niches worldwide. "I believe A. Schulman's expertise, technology and service sets it apart from our competitors. These distinctions will become even more evident as we progress into fiscal 2018."

Please refer to the reconciliation of GAAP and Non-GAAP financial measures for the types of items excluded from the Company's business outlook.

(Street sees FY EPS of $2.11 on revenue of $2.45 billion)

For earnings history and earnings-related data on A. Schulman (SHLM) click here.

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