A. Schulman Results Miss Estimates; Stock Tanks

(RTTNews) - A. Schulman Inc (SHLM), a supplier of plastic compounds and resins, on Monday reported third-quarter net loss to equity holders of $9.9 million or $0.34 per share compared with a profit of $19 million or $0.65 per share last year.

Excluding acquisition costs, restructuring charges and other one-time items, adjusted earnings for the quarter were $0.72 per share compared with $0.74 per share a year ago.

Revenues for the quarter were lower at $560.9 million compared with $645.7 million in the prior year.

Analysts polled by Thomson Reuters estimated earnings of $0.77 per share on revenues of $609 million for the quarter. Analysts' estimates typically exclude special items.

The company said foreign currency translation accounted for $91.4 million of the decrease in sales.

Gross margin was 16.2% versus 14.2% a year ago.

Looking ahead to the full year 2015, the company now expects adjusted earnings of $2.37 to $2.42 per share, down from prior guidance of $2.50 to $2.55 per share. Analysts expect earnings of $2.47 per share.

The company said its earlier guidance did not include any impact from the then pending acquisition of HGGC Citadel Plastics Holdings Inc, which has since been completed.

As a result, its new guidance reflects the fiscal 2015 dilution from the Citadel acquisition as well as the convertible special stock dividend, Schulman said.

The company believes that the fiscal 2015 dilution related to the Citadel acquisition, including the $0.01 per share negative impact on its third quarter results, will be about $0.05 per share.

And the dividend on the convertible special stock will impact the calculation of diluted earnings per share by about $0.08 per share in fiscal 2015, including the $0.02 impact on its third quarter results.

SHLM closed Monday at $42.16, down $0.97 or 2.25%, on the Nasdaq. In after hours, the stock dropped $2.66 or 6.31% at $39.50.