Axiall Goes Red

Axiall (NYSE: AXLL  ) reported earnings on May 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Axiall missed estimates on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share dropped. GAAP earnings per share contracted to a loss.

Gross margins grew, operating margins grew, net margins shrank.

Revenue details
Axiall reported revenue of $1.06 billion. The seven analysts polled by S&P Capital IQ anticipated sales of $1.12 billion on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $859.9 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 $0.75. The nine earnings estimates compiled by S&P Capital IQ predicted $1.18 per share. Non-GAAP EPS of $0.75 for Q1 were 5.1% lower than the prior-year quarter's $0.79 per share. GAAP EPS were -$0.06 for Q1 against $1.01 per share for the prior-year quarter.

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 15.3%, 330 basis points better than the prior-year quarter. Operating margin was 7.0%, 50 basis points better than the prior-year quarter. Net margin was -0.3%, 440 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $1.34 billion. On the bottom line, the average EPS estimate is $1.50.

Next year's average estimate for revenue is $4.95 billion. The average EPS estimate is $5.19.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Axiall is outperform, with an average price target of $61.38.

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