The 10-second takeaway
For the quarter ended March 31 (Q1), Chemtura missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped to a loss.
Margins contracted across the board.
Chemtura logged revenue of $606.0 million. The seven analysts polled by S&P Capital IQ expected sales of $638.9 million on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $708.0 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 $0.15. The seven earnings estimates compiled by S&P Capital IQ averaged $0.19 per share. Non-GAAP EPS of $0.15 for Q1 were 21% lower than the prior-year quarter's $0.19 per share. GAAP EPS were -$0.23 for Q1 versus $0.22 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 20.8%, 340 basis points worse than the prior-year quarter. Operating margin was 2.6%, 350 basis points worse than the prior-year quarter. Net margin was -3.8%, 690 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $794.4 million. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $2.84 billion. The average EPS estimate is $1.52.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 25 members out of 28 rating the stock outperform, and three members rating it underperform. Among six CAPS All-Star picks (recommendations by the highest-ranked CAPS members), four give Chemtura 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 Chemtura is outperform, with an average price target of $29.00.
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