Zacks: Brokerages Expect Kraton Corp (NYSE:KRA) to Post $0.08 EPS

Equities research analysts expect Kraton Corp (NYSE:KRA) to report earnings of $0.08 per share for the current fiscal quarter, according to Zacks Investment Research. Two analysts have provided estimates for Kraton’s earnings, with the highest EPS estimate coming in at $0.11 and the lowest estimate coming in at $0.04. Kraton posted earnings of $0.67 per share during the same quarter last year, which would indicate a negative year-over-year growth rate of 88.1%. The firm is expected to issue its next quarterly earnings results on Wednesday, February 26th.

According to Zacks, analysts expect that Kraton will report full year earnings of $3.06 per share for the current fiscal year, with EPS estimates ranging from $3.03 to $3.09. For the next year, analysts forecast that the company will post earnings of $3.66 per share, with EPS estimates ranging from $3.40 to $3.92. Zacks Investment Research’s EPS calculations are an average based on a survey of sell-side analysts that that provide coverage for Kraton.

Kraton (NYSE:KRA) last released its quarterly earnings data on Wednesday, October 23rd. The specialty chemicals company reported $0.52 EPS for the quarter, missing the Zacks’ consensus estimate of $0.64 by ($0.12). The firm had revenue of $444.22 million during the quarter, compared to the consensus estimate of $473.49 million. Kraton had a net margin of 4.89% and a return on equity of 14.96%. Kraton’s quarterly revenue was down 15.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.02 EPS.

A number of research firms have issued reports on KRA. Macquarie set a $33.00 target price on Kraton and gave the stock a “hold” rating in a report on Friday, October 11th. ValuEngine cut Kraton from a “hold” rating to a “sell” rating in a report on Tuesday, October 29th. SunTrust Banks lowered their target price on Kraton from $33.00 to $24.00 and set a “hold” rating for the company in a report on Friday, October 11th. Zacks Investment Research cut Kraton from a “hold” rating to a “sell” rating in a report on Thursday, October 17th. Finally, UBS Group lowered their target price on Kraton from $25.00 to $17.00 and set a “sell” rating for the company in a report on Friday, October 11th. Four investment analysts have rated the stock with a sell rating and three have issued a hold rating to the company. Kraton currently has an average rating of “Sell” and a consensus price target of $26.40.

KRA stock traded up $0.35 during trading hours on Thursday, reaching $24.93. 2,902 shares of the stock were exchanged, compared to its average volume of 463,073. The firm’s 50-day moving average is $26.77 and its 200-day moving average is $28.63. The company has a market cap of $784.35 million, a price-to-earnings ratio of 7.91 and a beta of 2.32. The company has a debt-to-equity ratio of 1.79, a current ratio of 2.26 and a quick ratio of 0.97. Kraton has a 12 month low of $19.13 and a 12 month high of $40.76.

In other news, CEO Kevin Michael Fogarty sold 39,496 shares of the stock in a transaction dated Monday, November 4th. The shares were sold at an average price of $24.45, for a total transaction of $965,677.20. Following the completion of the transaction, the chief executive officer now directly owns 298,848 shares in the company, valued at approximately $7,306,833.60. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, SVP Melinda Scissors Conley sold 4,493 shares of the stock in a transaction dated Tuesday, November 5th. The stock was sold at an average price of $25.71, for a total transaction of $115,515.03. Following the transaction, the senior vice president now owns 33,353 shares of the company’s stock, valued at $857,505.63. The disclosure for this sale can be found here. Corporate insiders own 3.32% of the company’s stock.

Several institutional investors have recently bought and sold shares of the company. BBVA USA Bancshares Inc. lifted its position in Kraton by 29.2% during the third quarter. BBVA USA Bancshares Inc. now owns 16,384 shares of the specialty chemicals company’s stock worth $528,000 after acquiring an additional 3,707 shares during the last quarter. Mackay Shields LLC acquired a new stake in Kraton during the third quarter worth approximately $1,831,000. California Public Employees Retirement System increased its holdings in shares of Kraton by 16.0% during the third quarter. California Public Employees Retirement System now owns 56,454 shares of the specialty chemicals company’s stock worth $1,823,000 after purchasing an additional 7,768 shares during the period. State of Tennessee Treasury Department increased its holdings in shares of Kraton by 11.4% during the third quarter. State of Tennessee Treasury Department now owns 20,943 shares of the specialty chemicals company’s stock worth $676,000 after purchasing an additional 2,144 shares during the period. Finally, Lapides Asset Management LLC increased its holdings in shares of Kraton by 57.8% during the third quarter. Lapides Asset Management LLC now owns 117,900 shares of the specialty chemicals company’s stock worth $3,807,000 after purchasing an additional 43,200 shares during the period. Institutional investors own 95.93% of the company’s stock.

About Kraton

Kraton Corporation manufactures and sells styrenic block copolymers and other engineered polymers in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in two segments, Polymer and Chemical. The Polymer segment offers performance products, including styrene-butadiene-styrene and styrene-isoprene-styrene; and specialty polymers, such as hydrogenated styrenic block copolymers, as well as isoprene rubber and isoprene rubber latex for use in medical and personal care products, adhesives, tackifiers, paints, and coatings.

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