Chemtura
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Chemtura missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share was unchanged.
Gross margins increased, operating margins increased, net margins were steady.
Revenue details
Chemtura booked revenue of $743.0 million. The four analysts polled by S&P Capital IQ expected to see a top line of $776.7 million on the same basis. GAAP reported sales were 3.9% lower than the prior-year quarter's $773.0 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 $0.35. The four earnings estimates compiled by S&P Capital IQ predicted $0.36 per share. GAAP EPS of $0.09 were the same as the prior-year quarter.
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 25.8%, 330 basis points better than the prior-year quarter. Operating margin was 9.0%, 330 basis points better than the prior-year quarter. Net margin was 1.2%, about the same as the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $721.3 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $3.05 billion. The average EPS estimate is $1.52.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 19 members out of 22 rating the stock outperform, and three members rating it underperform. Among four CAPS All-Star picks (recommendations by the highest-ranked CAPS members), three give Chemtura a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Chemtura is outperform, with an average price target of $24.00.
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