Westlake Chemical (NYSE: WLK ) reported earnings on Feb. 19. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Westlake Chemical missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. GAAP earnings per share grew significantly.
Margins increased across the board.
Westlake Chemical recorded revenue of $801.0 million. The nine analysts polled by S&P Capital IQ expected net sales of $831.3 million on the same basis. GAAP reported sales were 6.8% lower than the prior-year quarter's $859.2 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 $1.42. The nine earnings estimates compiled by S&P Capital IQ anticipated $1.21 per share. GAAP EPS of $1.42 for Q4 were 264% higher than the prior-year quarter's $0.39 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 23.8%, 1,440 basis points better than the prior-year quarter. Operating margin was 19.5%, 1,330 basis points better than the prior-year quarter. Net margin was 11.9%, 880 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $887.1 million. On the bottom line, the average EPS estimate is $1.08.
Next year's average estimate for revenue is $3.63 billion. The average EPS estimate is $5.76.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 94 members out of 106 rating the stock outperform, and 12 members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Westlake Chemical 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 Westlake Chemical is hold, with an average price target of $69.88.
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