The 10-second takeaway
For the quarter ended Dec. 31 (Q4), NewMarket missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share grew significantly.
Margins grew across the board.
NewMarket notched revenue of $516.2 million. The three analysts polled by S&P Capital IQ anticipated revenue of $538.9 million on the same basis. GAAP reported sales were 2.1% higher than the prior-year quarter's $505.6 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 $3.47. The five earnings estimates compiled by S&P Capital IQ averaged $4.11 per share. GAAP EPS of $3.94 for Q4 were 57% higher than the prior-year quarter's $2.51 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 27.2%, 250 basis points better than the prior-year quarter. Operating margin was 13.5%, 230 basis points better than the prior-year quarter. Net margin was 10.3%, 360 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $588.6 million. On the bottom line, the average EPS estimate is $5.04.
Next year's average estimate for revenue is $2.34 billion. The average EPS estimate is $18.81.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 259 members out of 268 rating the stock outperform, and nine members rating it underperform. Among 77 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 74 give NewMarket a green thumbs-up, and three give it a red thumbs-down.
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