Albemarle Beats Estimates Yet Again

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Albemarle (NYS: ALB) reported earnings on Jan. 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Albemarle beat slightly on revenues and beat slightly on earnings per share.

Compared to the prior-year quarter, revenue improved significantly, and earnings per share improved significantly.

Margins increased across the board.

Revenue details
Albemarle reported revenue of $707 million. The seven analysts polled by S&P Capital IQ predicted net sales of $699 million. Sales were 17% higher than the prior-year quarter's $605 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $1.11. The 11 earnings estimates compiled by S&P Capital IQ predicted $1.09 per share. GAAP EPS of $1.11 for Q4 were 21% higher than the prior-year quarter's $0.92 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 33.1%, 60 basis points better than the prior-year quarter. Operating margin was 19.2%, 80 basis points better than the prior-year quarter. Net margin was 14.1%, 10 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $752 million. On the bottom line, the average EPS estimate is $1.22.

Next year's average estimate for revenue is $3 billion. The average EPS estimate is $4.74.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 214 members out of 226 rating the stock outperform, and 13 members rating it underperform. Among 70 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 give Albemarle a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Albemarle is outperform, with an average price target of $62.44.

At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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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