The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Albemarle beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share contracted significantly.
Margins shrank across the board.
Albemarle notched revenue of $687.6 million. The 14 analysts polled by S&P Capital IQ predicted a top line of $646.8 million on the same basis. GAAP reported sales were 2.8% lower than the prior-year quarter's $707.4 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 $1.17. The 16 earnings estimates compiled by S&P Capital IQ predicted $1.01 per share. GAAP EPS of $0.42 for Q4 were 62% lower than the prior-year quarter's $1.11 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 27.9%, 520 basis points worse than the prior-year quarter. Operating margin was 7.1%, 1,210 basis points worse than the prior-year quarter. Net margin was 5.5%, 860 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $724.7 million. On the bottom line, the average EPS estimate is $1.22.
Next year's average estimate for revenue is $2.86 billion. The average EPS estimate is $5.04.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 222 members out of 236 rating the stock outperform, and 14 members rating it underperform. Among 74 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 72 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 $67.92.
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