Braskem Beats on the Top Line

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Braskem (NYS: BAK) reported earnings March 14. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped to a loss.

Margins dropped across the board.

Revenue details
Braskem chalked up revenue of $4.67 billion. The two analysts polled by S&P Capital IQ looked for sales of $4.48 billion on the same basis. GAAP reported sales were 7.2% higher than the prior-year quarter's $4.36 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at -$0.27. The one earnings estimate compiled by S&P Capital IQ expected $0.14 per share on the same basis. GAAP EPS were -$0.14 for Q4 against $1.04 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 8.0%, 480 basis points worse than the prior-year quarter. Operating margin was 3.1%, 130 basis points worse than the prior-year quarter. Net margin was -2.2%, 2,180 basis points worse than the prior-year quarter.

Looking ahead
Next year's average estimate for revenue is $18.47 billion. The average EPS estimate is $0.20.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 335 members out of 349 rating the stock outperform, and 14 members rating it underperform. Among 108 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 108 give Braskem a green thumbs-up.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Braskem is hold, with an average price target of $24.10.

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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