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Can Chemical & Mining Co. of Chile Beat These Numbers?

By Seth Jayson – Updated Apr 10, 2017 at 1:14PM

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Checking expectations

Chemical & Mining Co. of Chile (NYSE: SQM) is expected to report Q1 earnings on May 22. 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 Chemical & Mining Co. of Chile's revenues will increase 7.0% and EPS will increase 5.3%.

The average estimate for revenue is $566.5 million. On the bottom line, the average EPS estimate is $0.60.

Revenue details
Last quarter, Chemical & Mining Co. of Chile logged revenue of $601.0 million. GAAP reported sales were 12% higher than the prior-year quarter's $538.9 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, EPS came in at $0.54. GAAP EPS of $0.54 for Q4 were 10.0% lower than the prior-year quarter's $0.60 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 39.0%, 120 basis points worse than the prior-year quarter. Operating margin was 32.3%, 680 basis points worse than the prior-year quarter. Net margin was 23.6%, 590 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $2.48 billion. The average EPS estimate is $2.45.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,399 members out of 1,427 rating the stock outperform, and 28 members rating it underperform. Among 208 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 201 give Chemical & Mining Co. of Chile a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Chemical & Mining Co. of Chile is outperform, with an average price target of $63.04.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Sociedad Quimica y Minera (ADR). Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Sociedad Quimica y Minera de Chile S.A. Stock Quote
Sociedad Quimica y Minera de Chile S.A.
SQM
$91.81 (-2.28%) $-2.14

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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