The 10-second takeaway
For the quarter ended Dec. 31 (Q4), LSB Industries beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly. GAAP earnings per share dropped significantly.
Margins contracted across the board.
LSB Industries booked revenue of $177.1 million. The three analysts polled by S&P Capital IQ expected a top line of $173.5 million on the same basis. GAAP reported sales were 18% lower than the prior-year quarter's $215.4 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 $0.49. The three earnings estimates compiled by S&P Capital IQ predicted $0.20 per share. GAAP EPS of $0.49 for Q4 were 59% lower than the prior-year quarter's $1.19 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 22.8%, 640 basis points worse than the prior-year quarter. Operating margin was 10.4%, 870 basis points worse than the prior-year quarter. Net margin was 6.5%, 650 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $184.3 million. On the bottom line, the average EPS estimate is $0.67.
Next year's average estimate for revenue is $849.1 million. The average EPS estimate is $3.77.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 567 members out of 585 rating the stock outperform, and 18 members rating it underperform. Among 140 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 136 give LSB Industries a green thumbs-up, and four 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 $46.67.
Looking for alternatives to LSB Industries? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add LSB Industries to My Watchlist.