The 10-second takeaway
For the quarter ended June 30 (Q2), Albemarle missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share dropped significantly. GAAP earnings per share increased significantly.
Gross margins shrank, operating margins dropped, net margins expanded.
Albemarle recorded revenue of $634.2 million. The 12 analysts polled by S&P Capital IQ anticipated revenue of $653.5 million on the same basis. GAAP reported sales were 7.4% lower than the prior-year quarter's $684.9 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 $0.97. The 18 earnings estimates compiled by S&P Capital IQ anticipated $0.98 per share. Non-GAAP EPS of $0.97 for Q2 were 22% lower than the prior-year quarter's $1.24 per share. GAAP EPS of $0.98 for Q2 were 133% higher than the prior-year quarter's $0.42 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 31.0%, 440 basis points worse than the prior-year quarter. Operating margin was 17.7%, 380 basis points worse than the prior-year quarter. Net margin was 13.0%, 750 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $704.8 million. On the bottom line, the average EPS estimate is $1.36.
Next year's average estimate for revenue is $2.73 billion. The average EPS estimate is $4.68.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 220 members out of 235 rating the stock outperform, and 15 members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 give Albemarle a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Albemarle is hold, with an average price target of $67.50.
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