The 10-second takeaway
For the quarter ended June 30 (Q2), Quaker Chemical beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share expanded. GAAP earnings per share increased significantly.
Margins increased across the board.
Quaker Chemical booked revenue of $184.8 million. The two analysts polled by S&P Capital IQ foresaw revenue of $178.5 million on the same basis. GAAP reported sales were 4.6% higher than the prior-year quarter's $176.8 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 $1.00. The four earnings estimates compiled by S&P Capital IQ predicted $0.92 per share. Non-GAAP EPS of $1.00 for Q2 were 11% higher than the prior-year quarter's $0.90 per share. GAAP EPS of $1.22 for Q2 were 51% higher than the prior-year quarter's $0.81 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 36.4%, 210 basis points better than the prior-year quarter. Operating margin was 10.7%, 110 basis points better than the prior-year quarter. Net margin was 8.7%, 270 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $182.0 million. On the bottom line, the average EPS estimate is $0.98.
Next year's average estimate for revenue is $721.2 million. The average EPS estimate is $3.62.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 218 members out of 225 rating the stock outperform, and seven members rating it underperform. Among 61 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 give Quaker Chemical a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Quaker Chemical is outperform, with an average price target of $67.33.
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