Braskem Beats on the Top Line

Seth Jayson, The Motley Fool
Updated

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 thisarticle 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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