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Can NewMarket Meet These Numbers?

By Seth Jayson - Updated Apr 10, 2017 at 1:48PM

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Checking expectations

NewMarket (NYSE: NEU) is expected to report Q1 earnings on April 24. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict NewMarket's revenues will increase 2.2% and EPS will wane -4.2%.

The average estimate for revenue is $574.8 million. On the bottom line, the average EPS estimate is $4.82.

Revenue details
Last quarter, NewMarket logged revenue of $516.2 million. GAAP reported sales were 2.1% higher than the prior-year quarter's $505.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $3.47. GAAP EPS of $3.92 for Q4 were 56% higher than the prior-year quarter's $2.51 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 27.2%, 250 basis points better than the prior-year quarter. Operating margin was 13.5%, 230 basis points better than the prior-year quarter. Net margin was 10.3%, 360 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $2.34 billion. The average EPS estimate is $18.49.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 257 members out of 266 rating the stock outperform, and nine members rating it underperform. Among 72 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 69 give NewMarket a green thumbs-up, and three give it a red thumbs-down.

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Stocks Mentioned

NewMarket Corporation Stock Quote
NewMarket Corporation
NEU
$337.32 (0.77%) $2.58

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