NewMarket Misses on Revenues but Beats on EPS (NEU)

NewMarket Misses on Revenues but Beats on EPS

NewMarket (NYSE: NEU ) reported earnings on July 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), NewMarket missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue improved slightly and GAAP earnings per share expanded.

Margins improved across the board.

Revenue details
NewMarket reported revenue of $590.4 million. The three analysts polled by S&P Capital IQ anticipated sales of $613.7 million on the same basis. GAAP reported sales were 2.1% higher than the prior-year quarter's $578.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $4.69. The five earnings estimates compiled by S&P Capital IQ forecast $4.55 per share. GAAP EPS of $4.12 for Q2 were 9.3% higher than the prior-year quarter's $3.77 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 28.0%, 250 basis points better than the prior-year quarter. Operating margin was 16.3%, 160 basis points better than the prior-year quarter. Net margin was 9.4%, 40 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $591.3 million. On the bottom line, the average EPS estimate is $4.43.

Next year's average estimate for revenue is $2.32 billion. The average EPS estimate is $17.87.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 253 members out of 261 rating the stock outperform, and eight members rating it underperform. Among 66 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 63 give NewMarket a green thumbs-up, and three give it a red thumbs-down.

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