GCP Applied Technologies (GCP) Tops Q1 EPS by 11c, Revenues Miss; Affirms FY19 EPS Outlook

GCP Applied Technologies (NYSE: GCP) reported Q1 EPS of $0.20, $0.11 better than the analyst estimate of $0.09. Revenue for the quarter came in at $234.3 million versus the consensus estimate of $241.63 million.

• 1Q19 Net sales down 9.6%; Net Sales Constant Currency Excluding Market Exits* down 0.9%
• Gross margin up 150 bps to 36.4%
• 1Q19 Income from continuing operations attributable to GCP shareholders of $14.6 million, or 6.5% of net sales, compared to a loss of $13.8 million in 1Q18
• Adjusted EBIT* of $12.0 million; Adjusted EBIT Margin* of 5.3%
• 1Q19 Diluted earnings per share from continuing operations of $0.20; Adjusted EPS* of $0.07 compared to $0.01 in 1Q18
• Reaffirming full-year 2019 Adjusted EBIT and Adjusted EPS guidance
• Updating full-year 2019 Net Sales Constant Currency and Adjusted Free Cash Flow* guidance

Gregory E. Poling, GCP’s Chief Executive Officer, said, "In the first quarter, we made significant progress reducing our operating expenses and improving our gross margin despite a slower start to the construction season. Our gross margin expanded due to our focus on core geographies in Specialty Construction Chemicals, higher price and increased VERIFI® sales. We expect to build on these improvements through the remainder of the year as our volumes increase with typical seasonal demand.”

Poling continued, “We continue to focus on implementing our key growth programs, repositioning our business, and delivering value to our customers. As previously announced, our Board of Directors and management team are continuing to evaluate strategic, financial and operational alternatives to maximize value for our shareholders."

GUIDANCE:

GCP Applied Technologies sees FY2019 EPS of $1.03-$1.14, versus the consensus of $1.10.

For earnings history and earnings-related data on GCP Applied Technologies (GCP) click here.

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