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.
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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. 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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