Omnova Solutions Inc. Stock Downgraded (OMN)
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- OMNOVA SOLUTIONS INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, OMNOVA SOLUTIONS INC increased its bottom line by earning $0.55 versus $0.36 in the prior year. This year, the market expects an improvement in earnings ($0.66 versus $0.55).
- OMN, with its decline in revenue, underperformed when compared the industry average of 5.5%. Since the same quarter one year prior, revenues slightly dropped by 8.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
- The gross profit margin for OMNOVA SOLUTIONS INC is rather low; currently it is at 19.50%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.07% is significantly below that of the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Chemicals industry. The net income has significantly decreased by 101.5% when compared to the same quarter one year ago, falling from $13.50 million to -$0.20 million.
-- Written by a member of TheStreet Ratings Staff
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