Jefferies Lowers EPS Estimates on OMNOVA (OMN)

Jefferies is out with its report on OMNOVA OMN lowering its EPS estimates. In a note sent to clients, Jefferies writes, "Excluding net one-off items of $1.62/share, OMNOVA reported Q4 EPS of $0.18, $0.07 below consensus and $0.09 below our estimate. To incorporate increased raw material pressure in Decorative Products, higher taxes, and interest expense we are lowering our 2011E EPS $0.35 to $0.60 and lowering 2012E by $0.20 to $0.85." Jefferies maintains a Hold and $8.25 PT on OMN. OMN closed yesterday at $7.75, down 7.30%.