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Does The Street Have LSB Industries Figured Out?

By Seth Jayson – Updated Apr 10, 2017 at 12:25PM

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Checking expectations

LSB Industries (NYSE: LXU) is expected to report Q2 earnings on Aug. 6. 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 LSB Industries's revenues will wither -12.9% and EPS will drop -78.4%.

The average estimate for revenue is $182.2 million. On the bottom line, the average EPS estimate is $0.24.

Revenue details
Last quarter, LSB Industries notched revenue of $150.7 million. GAAP reported sales were 21% lower than the prior-year quarter's $190.2 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 details
Last quarter, non-GAAP EPS came in at -$0.30. GAAP EPS were -$0.02 for Q1 compared to $0.61 per share for the prior-year quarter.

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.

Recent performance
For the preceding quarter, gross margin was 10.2%, much worse than the prior-year quarter. Operating margin was -7.1%, much worse than the prior-year quarter. Net margin was 0.0%, 750 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $744.5 million. The average EPS estimate is $1.80.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 565 members out of 583 rating the stock outperform, and 18 members rating it underperform. Among 132 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 128 give LSB Industries a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on LSB Industries is buy, with an average price target of $49.00.

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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.

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Stocks Mentioned

LSB Industries, Inc. Stock Quote
LSB Industries, Inc.
LXU
$12.95 (2.45%) $0.31

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