Albemarle
The 10-second takeaway
For the quarter ended June 30 (Q2), Albemarle missed estimates on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share shrank significantly.
Gross margins improved, operating margins grew, net margins dropped.
Revenue details
Albemarle logged revenue of $684.9 million. The nine analysts polled by S&P Capital IQ expected sales of $735.6 million on the same basis. GAAP reported sales were 7.7% lower than the prior-year quarter's $742.1 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 $1.24. The 12 earnings estimates compiled by S&P Capital IQ averaged $1.22 per share. GAAP EPS of $0.42 for Q2 were 66% lower than the prior-year quarter's $1.23 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 35.4%, 140 basis points better than the prior-year quarter. Operating margin was 21.5%, 140 basis points better than the prior-year quarter. Net margin was 5.5%, 990 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $724.3 million. On the bottom line, the average EPS estimate is $1.26.
Next year's average estimate for revenue is $2.84 billion. The average EPS estimate is $4.88.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 223 members out of 238 rating the stock outperform, and 15 members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 65 give Albemarle a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Albemarle is outperform, with an average price target of $72.00.
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