A. Schulman Sees Q2 Adj. EPS Below View, Cuts FY16 Profit View; Stock Plunges

(RTTNews) - A. Schulman Inc. (SHLM), a international supplier of high-performance plastic compounds, composites, powders and resins, said that it expects adjusted earnings per share for second quarter to be below analysts' estimation. The company lowered its full-year fiscal 2016 adjusted earnings guidance.

In the pre-market trade, SHLM is currently trading at $24.81, down $3.00 or 10.79%. Looking ahead for the second quarter, the company expects adjusted earnings of approximately $0.25 to $0.30 per share. Analysts polled by Thomson Reuters expect the company to report earnings of $0.48 per share for the second-quarter. Analysts' estimates typically exclude special items.

The company has lowered its full-year fiscal 2016 adjusted earnings guidance to be in the range of $2.40 to $2.45 per share. Analysts expect annual earnings of $2.76 per share. Previously, the company had expected earnings to be in a range of $2.80 to $2.85 per share for fiscal year 2016.

"First, the business teams have been focused on correcting the previously disclosed Lucent quality matter, which again had a negative financial impact and the teams have been diverted away from planned growth initiatives. While we are making progress in resolving this issue, we anticipate the financial impact from Lucent to continue into the second half. Second, in both our Citadel and legacy businesses we experienced weakness driven by the lower oil price environment which impacted sales volumes in some markets we serve. Although the weakness will continue until the global oil environment recovers, we believe that the demand for our products has stabilized albeit at a reduced level. Finally, we were negatively impacted by the continuing global economic slowdown. While we executed additional cost out actions in the first half, these savings were not sufficient to offset the above-mentioned factors," stated Bernard Rzepka, President and Chief Executive Officer.