The Gory Details on Chemical & Mining Co. of Chile's Double Fumble

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Chemical & Mining Co. of Chile (NYS: SQM) reported earnings on May 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Chemical & Mining Co. of Chile missed estimates on revenues and missed estimates on earnings per share.

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


Margins grew across the board.

Revenue details
Chemical & Mining Co. of Chile reported revenue of $529.6 million. The two analysts polled by S&P Capital IQ expected a top line of $565.4 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $480.0 million.

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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
EPS came in at $0.57. The three earnings estimates compiled by S&P Capital IQ averaged $0.58 per share. GAAP EPS of $0.57 for Q1 were 36% higher than the prior-year quarter's $0.42 per share.

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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 53.5%, 1,440 basis points better than the prior-year quarter. Operating margin was 40.3%, 800 basis points better than the prior-year quarter. Net margin was 28.3%, 510 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $611.2 million. On the bottom line, the average EPS estimate is $0.57.

Next year's average estimate for revenue is $2.47 billion. The average EPS estimate is $2.47.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,442 members out of 1,470 rating the stock outperform, and 28 members rating it underperform. Among 254 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 248 give Chemical & Mining Co. of Chile a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Chemical & Mining Co. of Chile is outperform, with an average price target of $60.61.

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. Motley Fool newsletter services have recommended buying shares of Chemical & Mining of Chile. 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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