The 10-second takeaway
For the quarter ended March 31 (Q1), NewMarket missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share was unchanged. GAAP earnings per share expanded slightly.
Gross margins grew, operating margins dropped, net margins increased.
NewMarket reported revenue of $562.6 million. The three analysts polled by S&P Capital IQ expected sales of $574.7 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $5.04. The five earnings estimates compiled by S&P Capital IQ predicted $4.82 per share. Non-GAAP EPS of $5.04 for Q1 were 0.2% higher than the prior-year quarter's $5.03 per share. GAAP EPS of $5.07 for Q1 were 2.2% higher than the prior-year quarter's $4.96 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 30.3%, 20 basis points better than the prior-year quarter. Operating margin was 17.5%, 110 basis points worse than the prior-year quarter. Net margin was 12.1%, 30 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $639.6 million. On the bottom line, the average EPS estimate is $5.09.
Next year's average estimate for revenue is $2.35 billion. The average EPS estimate is $18.53.
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 70 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 67 give NewMarket a green thumbs-up, and three give it a red thumbs-down.
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