The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Albemarle met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share contracted.
Margins dropped across the board.
Albemarle reported revenue of $661.2 million. The 10 analysts polled by S&P Capital IQ looked for a top line of $670.2 million on the same basis. GAAP reported sales were 8.5% lower than the prior-year quarter's $723.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.10. The 12 earnings estimates compiled by S&P Capital IQ anticipated $1.11 per share. GAAP EPS of $1.10 for Q3 were 14% lower than the prior-year quarter's $1.28 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 32.5%, 320 basis points worse than the prior-year quarter. Operating margin was 19.4%, 280 basis points worse than the prior-year quarter. Net margin was 15.0%, 110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $636.6 million. On the bottom line, the average EPS estimate is $1.09.
Next year's average estimate for revenue is $2.67 billion. The average EPS estimate is $4.63.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 221 members out of 235 rating the stock outperform, and 14 members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 65 give Albemarle a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Albemarle is outperform, with an average price target of $68.00.
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