The 10-second takeaway
For the quarter ended June 30 (Q2), Chemtura met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped to a loss.
Gross margins were steady, operating margins dropped, net margins dropped.
Chemtura recorded revenue of $735.0 million. The one analyst polled by S&P Capital IQ predicted sales of $735.0 million on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $845.0 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 $0.40. The seven earnings estimates compiled by S&P Capital IQ averaged $0.36 per share. Non-GAAP EPS of $0.40 for Q2 were 34% lower than the prior-year quarter's $0.61 per share. GAAP EPS were -$0.93 for Q2 versus $0.50 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 25.4%, much about the same as the prior-year quarter. Operating margin was 10.6%, 60 basis points worse than the prior-year quarter. Net margin was -12.7%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $672.0 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $2.65 billion. The average EPS estimate is $1.13.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 29 members out of 34 rating the stock outperform, and five members rating it underperform. Among 11 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 10 give Chemtura 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 Chemtura is outperform, with an average price target of $28.25.
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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 has no position in any of the stocks mentioned. 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.