The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Quaker Chemical beat expectations on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share grew significantly.
Gross margin shrank, operating margin shrank, and net margin increased.
Quaker Chemical notched revenue of $173.3 million. The two analysts polled by S&P Capital IQ looked for a top line of $163.4 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $142.1 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 $0.75. The four earnings estimates compiled by S&P Capital IQ predicted $0.78 per share. GAAP EPS of $0.75 for Q4 were 19% higher than the prior-year quarter's $0.63 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 32.7%, 100 basis points worse than the prior-year quarter. Operating margin was 6.6%, 200 basis points worse than the prior-year quarter. Net margin was 5.6%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $160.7 million. On the bottom line, the average EPS estimate is $0.70.
Next year's average estimate for revenue is $702.3 million. The average EPS estimate is $3.46.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 202 members out of 208 rating the stock outperform, and six members rating it underperform. Among 58 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 57 give Quaker Chemical a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Quaker Chemical is buy, with an average price target of $50.83.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Quaker Chemical. Learn how to maximize your investment income in our free report: "Secure Your Future With 11 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add Quaker Chemical to My Watchlist.
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. 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.