A. Schulman (NASDAQ:SHLM) Profit Soars 30% on Tax Benefit; But Misses Estimates – SHLM, DOW, WLK, POL

The Akron, Ohio-based A. Schulman Inc (NASDAQ:SHLM) announced its profit hiked 30% in fiscal Q2 on Monday, mainly assisted by tax benefits, even as earnings failed to meet Wall Street forecasts.

Plastic compounds supplier reported sales hiked 5.3% from a year ago, but was somewhat counterbalance by weak demand in the EMEA and APAC regions in addition to lower margins.

Schulman announced net income for three months period was $11.8 million or $0.40 a share, evaluated against $9 million or $0.31 a share in a year ago. Quarterly results include tax benefits of $6 million.

Adjusted earnings were $8 million or $0.27 a share for three months period, evaluated against $11 million or $0.38 a share previous year.

Thomson Reuters four analysts survey on average forecasted earnings of $0.40 a share for three months period.

Shifting reader’s focus to broader market, let us consider market performance of other stocks that significantly affect same sector. The Dow Chemical Company (NYSE:DOW) fell -0.71% to settle at $30.68, Westlake Chemical Corporation (NYSE:WLK) moved down -0.50% to end at $85.49 while PolyOne Corporation (NYSE:POL) jumped +0.85% to finish at $23.80 on Monday.

A. Schulman Inc (NASDAQ:SHLM) last session’s volume of 143,807 shares was lower than its average volume of 122,439 shares. The stock after opening at $30.09 hit high price of $30.09 and then closed at $29.75 by scoring -1.13%.

SHLM generated revenue of $2.13 billion in the previous twelve months and earned $49.08 million. The Company showed a positive 2.36% in the net profit margin as well as in its operating margin which remained at 3.35%. Company’s annual sales growth for the past five years was 3.35%.

The SHLM’s past twelve months’ price to sales ratio was 0.41 and price to cash ratio remained 8.14. As far as the returns are concerned, SHLM’s return on equity was recorded as 9.59% and return on investment increased 6.02% while its return on asset stayed at 4.20%.

The stock showed weekly downbeat performance of -4.00% which was maintained for the month at -6.24%. Likewise the negative performance for the quarter was recorded as -1.88% and for the year was 10.43% while the YTD performance remained at 2.80%.

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