NewMarket Crushes Earnings Estimates
NewMarket (NYS: NEU) reported earnings on April 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), NewMarket beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share improved significantly.
Margins improved across the board.
NewMarket booked revenue of $562.7 million. The three analysts polled by S&P Capital IQ predicted a top line of $536.1 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $508.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $5.03. The five earnings estimates compiled by S&P Capital IQ predicted $3.50 per share on the same basis. GAAP EPS of $4.96 for Q1 were 39% higher than the prior-year quarter's $3.57 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 30.1%, 240 basis points better than the prior-year quarter. Operating margin was 18.6%, 320 basis points better than the prior-year quarter. Net margin was 11.8%, 200 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $578.5 million. On the bottom line, the average EPS estimate is $4.15.
Next year's average estimate for revenue is $2.24 billion. The average EPS estimate is $15.43.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 247 members out of 255 rating the stock outperform, and eight members rating it underperform. Among 68 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 65 give NewMarket a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NewMarket is hold, with an average price target of $192.50.
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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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