A. Schulman (SHLM) Reports In-Line Q4 EPS, Beats on Revenues; Boosts FY18 EPS Outlook Above Guidance

A. Schulman (NASDAQ: SHLM) reported Q4 EPS of $0.25, in-line with the analyst estimate of $0.25. Revenue for the quarter came in at $646.65 million versus the consensus estimate of $625 million.

Business Outlook

Gingo stated, “Our businesses in Latin America and Asia-Pacific are strong and growing – as is our global Engineered Composites business. In fact, our Latin American region had a record level of operating income for the year while our Asia-Pacific region reported, excluding foreign currency, a double-digit increase in operating income. Engineered Composite growth was driven by Quantum®, our strong carbon fiber sheet molding business. We will continue to invest in growth platforms while building positive sales momentum in Europe. Lastly, we have stabilized our U.S. and Canada business which will drive future profitability,” he said.

The Company anticipates adjusted earnings before interest, tax, depreciation and amortization (“EBITDA”) for fiscal 2018 to be in the range of $220 million to $230 million. Fiscal 2018 adjusted earnings per share (“EPS”) are expected to be between $2.00 and $2.20 per diluted share. The mid-point of the EPS estimate represents a 20% increase on a year-over-year basis.

“I believe fiscal 2018 will be the first year in our recovery as we deliver growth that generates strong cash flows and drives profit,” said Gingo. “If we execute our plan properly and capture the opportunities we’ve created for ourselves, we will return A. Schulman to a sustainable growth and profitability trajectory that we experienced prior to fiscal 2015.”

GUIDANCE:

A. Schulman sees FY2018 EPS of $2.00-$2.20, versus the consensus of $2.14.

• Reported fiscal 2017 fourth quarter net sales up approximately 7 percent compared with prior year period
• Full year cash flow from operations remains strong at $104.7 million
• Reset of business completed with streamlined structure and improved operational stability
• Company provides guidance for fiscal 2018; mid-point of EPS range represents 20% increase

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

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