The 10-second takeaway
For the quarter ended Sep. 30 (Q3), NewMarket missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share dropped.
Gross margins grew, operating margins increased, net margins dropped.
NewMarket chalked up revenue of $554.0 million. The three analysts polled by S&P Capital IQ expected revenue of $589.9 million on the same basis. GAAP reported sales were 0.6% lower than the prior-year quarter's $557.4 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 $4.91. The five earnings estimates compiled by S&P Capital IQ anticipated $4.36 per share. GAAP EPS of $4.83 for Q3 were 7.5% lower than the prior-year quarter's $5.22 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 29.3%, 330 basis points better than the prior-year quarter. Operating margin was 17.1%, 230 basis points better than the prior-year quarter. Net margin was 11.7%, 110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $558.1 million. On the bottom line, the average EPS estimate is $3.86.
Next year's average estimate for revenue is $2.31 billion. The average EPS estimate is $18.04.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 249 members out of 257 rating the stock outperform, and eight members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 give NewMarket a green thumbs-up, and three give it a red thumbs-down.
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