The 10-second takeaway
For the quarter ended Sep. 30 (Q3), LSB Industries beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew.
Gross margins dropped, operating margins contracted, net margins increased.
LSB Industries reported revenue of $182.4 million. The three analysts polled by S&P Capital IQ expected to see a top line of $175.3 million on the same basis. GAAP reported sales were 3.2% higher than the prior-year quarter's $176.8 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 $0.29. The three earnings estimates compiled by S&P Capital IQ predicted $0.64 per share. GAAP EPS of $0.28 for Q3 were 3.7% higher than the prior-year quarter's $0.27 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 18.2%, 120 basis points worse than the prior-year quarter. Operating margin was 6.5%, 60 basis points worse than the prior-year quarter. Net margin was 3.7%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $184.8 million. On the bottom line, the average EPS estimate is $0.70.
Next year's average estimate for revenue is $759.8 million. The average EPS estimate is $3.07.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 564 members out of 584 rating the stock outperform, and 20 members rating it underperform. Among 139 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 135 give LSB Industries a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on LSB Industries is buy, with an average price target of $51.67.
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