Chemical & Mining Co. of Chile Increases Sales but Misses Estimates on Earnings

Chemical & Mining Co. of Chile (NYSE: SQM  ) reported earnings on May 29. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Chemical & Mining Co. of Chile beat expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share grew.

Gross margins grew, operating margins dropped, net margins shrank.

Revenue details
Chemical & Mining Co. of Chile notched revenue of $623.4 million. The two analysts polled by S&P Capital IQ expected to see a top line of $566.5 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $529.6 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 $0.58. The three earnings estimates compiled by S&P Capital IQ predicted $0.60 per share. GAAP EPS of $0.58 for Q1 were 1.8% higher than the prior-year quarter's $0.57 per share.

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 46.6%, 200 basis points better than the prior-year quarter. Operating margin was 34.6%, 430 basis points worse than the prior-year quarter. Net margin was 24.4%, 390 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $634.9 million. On the bottom line, the average EPS estimate is $0.66.

Next year's average estimate for revenue is $2.51 billion. The average EPS estimate is $2.54.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,394 members out of 1,422 rating the stock outperform, and 28 members rating it underperform. Among 210 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 204 give Chemical & Mining Co. of Chile a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Chemical & Mining Co. of Chile is outperform, with an average price target of $63.44.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Sociedad Quimica y Minera (ADR). Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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