The 10-second takeaway
For the quarter ended June 30 (Q2), Westlake Chemical met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. GAAP earnings per share grew significantly.
Margins grew across the board.
Westlake Chemical reported revenue of $939.0 million. The nine analysts polled by S&P Capital IQ predicted revenue of $948.0 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $2.17. The nine earnings estimates compiled by S&P Capital IQ anticipated $1.94 per share. GAAP EPS of $2.17 for Q2 were 26% higher than the prior-year quarter's $1.72 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 29.1%, 700 basis points better than the prior-year quarter. Operating margin was 25.0%, 630 basis points better than the prior-year quarter. Net margin was 15.5%, 290 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $943.9 million. On the bottom line, the average EPS estimate is $1.84.
Next year's average estimate for revenue is $3.68 billion. The average EPS estimate is $7.20.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 105 members out of 117 rating the stock outperform, and 12 members rating it underperform. Among 32 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 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 $90.44.
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