The 10-second takeaway
For the quarter ended June 30 (Q2), LyondellBasell Industries whiffed on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share dropped.
Margins grew across the board.
LyondellBasell Industries reported revenue of $11.25 billion. The 12 analysts polled by S&P Capital IQ wanted to see a top line of $12.72 billion on the same basis. GAAP reported sales were 15% lower than the prior-year quarter's $13.31 billion.
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 $1.65. The 14 earnings estimates compiled by S&P Capital IQ averaged $1.40 per share. GAAP EPS of $1.33 for Q2 were 3.6% lower than the prior-year quarter's $1.38 per share. (The prior-year quarter included -$0.08 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 14.1%, 210 basis points better than the prior-year quarter. Operating margin was 12.0%, 200 basis points better than the prior-year quarter. Net margin was 6.8%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $12.21 billion. On the bottom line, the average EPS estimate is $1.30.
Next year's average estimate for revenue is $48.62 billion. The average EPS estimate is $4.75.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 85 members out of 88 rating the stock outperform, and three members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all 17 give LyondellBasell Industries a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on LyondellBasell Industries is outperform, with an average price target of $50.73.
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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 has no positions in the stocks mentioned above. 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.