The 10-second takeaway
For the quarter ended June 30 (Q2), NewMarket missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share shrank slightly. GAAP earnings per share grew significantly.
Gross margins grew, operating margins dropped, net margins grew.
NewMarket logged revenue of $583.8 million. The three analysts polled by S&P Capital IQ predicted revenue of $612.2 million on the same basis. GAAP reported sales were 1.1% lower than the prior-year quarter's $590.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $4.61. The five earnings estimates compiled by S&P Capital IQ anticipated $4.87 per share. Non-GAAP EPS of $4.61 for Q2 were 1.7% lower than the prior-year quarter's $4.69 per share. GAAP EPS of $4.81 for Q2 were 17% higher than the prior-year quarter's $4.12 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 29.0%, 100 basis points better than the prior-year quarter. Operating margin was 15.9%, 40 basis points worse than the prior-year quarter. Net margin was 11.0%, 160 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $606.5 million. On the bottom line, the average EPS estimate is $4.73.
Next year's average estimate for revenue is $2.32 billion. The average EPS estimate is $18.22.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 260 members out of 270 rating the stock outperform, and 10 members rating it underperform. Among 82 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 78 give NewMarket a green thumbs-up, and four give it a red thumbs-down.
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