The 10-second takeaway
For the quarter ended June 30 (Q2), LSB Industries beat expectations on revenue and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share contracted.
Margins increased across the board.
LSB Industries booked revenue of $209.3 million. The two analysts polled by S&P Capital IQ predicted sales of $188.8 million on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $235.6 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 $1.11. The two earnings estimates compiled by S&P Capital IQ anticipated $0.91 per share. GAAP EPS of $1.11 for Q2 were 9.0% lower than the prior-year quarter's $1.22 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 31.4%, 450 basis points better than the prior-year quarter. Operating margin was 20.2%, 300 basis points better than the prior-year quarter. Net margin was 12.4%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $157.3 million. On the bottom line, the average EPS estimate is $0.59.
Next year's average estimate for revenue is $711.9 million. The average EPS estimate is $2.93.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 568 members out of 586 rating the stock outperform, and 18 members rating it underperform. Among 129 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 124 give LSB Industries a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on LSB Industries is buy, with an average price target of $42.67.
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