Omnova Solutions (OMN) Tops Q3 EPS by 7c, Miss on Revenues

Omnova Solutions (NYSE: OMN) reported Q3 EPS of $0.25, $0.07 better than the analyst estimate of $0.18. Revenue for the quarter came in at $200.9 million versus the consensus estimate of $203.3 million.

Third Quarter 2017 Highlights

• Diluted Earnings per Share of $0.18 compared to $0.10 in last year\'s third quarter. Adjusted Diluted Earnings per Share increased 79% to $0.25, compared to $0.14 last year driven by margin expansion and growth in the specialties.
• Specialty Solutions sales in the quarter grew 7.5% compared to the prior year, with adjusted segment operating margins of 16.4%, while Performance Materials increased sales by 2.3%, excluding China Coated Fabrics, with adjusted segment operating margins of 9.7%. Overall adjusted segment operating margins reached 13.5% compared to 11.0% last year.
• Net Debt to Adjusted EBITDA decreased to 3.3x from 3.7x at the end of this year\'s second quarter.
• Completed sale of the unprofitable China Coated Fabrics business during the quarter as anticipated.

Outlook

During the fourth quarter, the Company expects to incur a $2-4 million operating profit reduction related to Hurricane Harvey and the antioxidant plant start-up issues discussed above. The Company continues to expect margin expansion from its various strategic initiatives and remains on track to deliver Adjusted Diluted Earnings per Share growth in fiscal 2017.

For earnings history and earnings-related data on Omnova Solutions (OMN) click here.

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