Synutra International Beats Expectations But Takes A Step Back Anyway

Synutra International (Nasdaq: SYUT  ) reported earnings on June 13. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q4), Synutra International missed estimates on revenues and beat expectations on earnings per share.

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

Margins dropped across the board.

Revenue details
Synutra International booked revenue of $72.9 million. The two analysts polled by S&P Capital IQ expected to see sales of $77.6 million on the same basis. GAAP reported sales were 15% lower than the prior-year quarter's $85.4 million.

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 $0.08. The two earnings estimates compiled by S&P Capital IQ predicted $0.02 per share. Non-GAAP EPS of $0.08 for Q4 were 38% lower than the prior-year quarter's $0.13 per share. GAAP EPS of $0.06 for Q4 were 54% lower than the prior-year quarter's $0.13 per share.

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 38.8%, 290 basis points worse than the prior-year quarter. Operating margin was 7.8%, much worse than the prior-year quarter. Net margin was 4.5%, 430 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $62.7 million. On the bottom line, the average EPS estimate is -$0.01.

Next year's average estimate for revenue is $302.2 million. The average EPS estimate is $0.13.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 76 members out of 148 rating the stock outperform, and 72 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 give Synutra International a green thumbs-up, and 28 give it a red thumbs-down.

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