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Earnings Review and Free Research Report: A. Schulman Reported Better Than Expected Earnings Results

Research Desk Line-up: Balchem Post Earnings Coverage

LONDON, UK / ACCESSWIRE / November 22, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on A. Schulman, Inc. (NASDAQ: SHLM), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=SHLM, following the Company's announcement of its financial results on October 25, 2017, for the fourth quarter of the fiscal year 2017. The supplier of plastic compounds and resins' net revenue increased 7% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Chemicals - Major Diversified industry. Pro-TD has currently selected Balchem Corporation (NASDAQ: BCPC) for due-diligence and potential coverage as the Company reported on November 07, 2017, its financial results for Q3 2017. Register for a free membership today, and be among the early birds that get access to our report on Balchem when we publish it.

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Earnings Reviewed

For the three months ended August 31, 2017, A. Schulman's net revenue increased 7% to $646.65 million from $604.59 million in Q4 FY16.

During Q4 FY17, A. Schulman's gross profit decreased 5.7% to $91.14 million from $96.70 million in the same period of last year. For the reported quarter, the Company's gross margin decreased 190 basis points to 14.1% of revenue from 16% of revenue in Q4 FY16. For the reported quarter, the Company's adjusted gross margin decreased 190 basis points to 14.2% of revenue from 16.1% of revenue in Q4 FY16.

During Q4 FY17, A. Schulman's earnings before interest, tax, depreciation, and amortization (EBITDA) was positive $33.10 million versus negative $359.65 million in the comparable period of last year. For the reported quarter, the Company's adjusted EBITDA decreased 14.4% to $46.10 million from $53.86 million in Q4 FY16. For the reported quarter, the Company's adjusted EBITDA margin decreased 180 basis points to 7.1% of revenue from 8.9% of revenue in Q4 FY16.

For the reported quarter, A. Schulman's selling, general, and administrative expenses (SG&A) increased 0.8% to $74.81 million from $74.24 million in Q4 FY16.

During Q4 FY17, the Company's operating income was $13.13 million compared to an operating loss of $382.98 million in the corresponding period of last year. For the reported quarter, the Company's adjusted operating income decreased 19.7% to $27.00 million from $33.61 million in the fourth quarter of 2016. For the reported quarter, the Company's adjusted operating margin decreased 140 basis points to 4.2% of revenue from 5.6% of revenue in Q4 FY16.

For the reported quarter, A. Schulman's net income was $7.40 million compared to a net loss of $385.08 million in Q4 FY16. During Q4 FY17, the Company's diluted earnings per share (EPS) was positive $0.25 compared to negative $13.12 in the same period of last year. For the reported quarter, A. Schulman's adjusted net income decreased 30.5% to $9.56 million from $13.75 million in Q4 FY16. During Q4 FY17, the Company's adjusted diluted EPS decreased 31.9% to $0.32 from $0.47 in Q4 FY16. The adjusted diluted EPS surpassed analysts' expectations of $0.26.

Segment Details

EMEA - During Q4 FY17, the Company's EMEA segment's net revenue increased 6.2% to $317.82 million from $299.17 million in the comparable period of last year. For the reported quarter, the segment's gross profit decreased 16.7% to $34.89 million from $41.89 million in Q4 FY16.

USCAN - During Q4 FY17, the Company's USCAN segment's net revenue increased 3.3% to $164.22 million from $158.93 million in the corresponding period of last year. For the reported quarter, the segment's gross profit increased 0.5% to $25.35 million from $25.23 million in Q4 FY16.

LATAM - During Q4 FY17, the Company's LATAM segment's net revenue increased 11.5% to $50.07 million from $44.91 million in the same period of last year. For the reported quarter, the segment's gross profit decreased 0.4% to $9.63 million from $9.66 million in Q4 FY16.

APAC - During Q4 FY17, the Company's APAC segment's net revenue increased 12.9% to $55.63 million from $49.28 million in the comparable period of last year. For the reported quarter, the segment's gross profit increased 3.2% to $8.40 million from $8.14 million in Q4 FY16.

Balance Sheet

As on August 31, 2017, A. Schulman's cash and cash equivalents increased 51% to $53.25 million from $35.26 million as on August 31, 2017. For the reported quarter, the Company's long-term debt decreased 3.7% to $885.18 million from $919.35 million in Q4 FY16.

For the reported quarter, the Company's net accounts receivable increased 8.4% to $408.44 million from $376.79 million in the fourth quarter of 2016. During Q4 FY17, the Company's accounts payable increased 13.8% to $318.82 million from $280.06 million in the corresponding period of last year.

During FY17, A. Schulman's cash provided by operating activities decreased 29.3% to $104.72 million from $148.13 million in FY16.

Stock Performance

A. Schulman's share price finished yesterday's trading session at $38.00, advancing 2.01%. A total volume of 242.08 thousand shares have exchanged hands. The Company's stock price surged 24.39% in the last three months, 29.25% in the past six months, and 18.20% in the previous twelve months. Additionally, the stock rallied 13.60% since the start of the year. Shares of the Company have a PE ratio of 43.98 and have a dividend yield of 2.16%. The stock currently has a market cap of $1.12 billion.

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