Albemarle Beats on EPS but GAAP Results Lag

Seth Jayson, The Motley Fool
Updated

Albemarle (NYS: ALB) reported earnings on July 17. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Albemarle missed estimates on revenues and beat slightly on earnings per share.

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


Gross margins improved, operating margins grew, net margins dropped.

Revenue details
Albemarle logged revenue of $684.9 million. The nine analysts polled by S&P Capital IQ expected sales of $735.6 million on the same basis. GAAP reported sales were 7.7% lower than the prior-year quarter's $742.1 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 $1.24. The 12 earnings estimates compiled by S&P Capital IQ averaged $1.22 per share. GAAP EPS of $0.42 for Q2 were 66% lower than the prior-year quarter's $1.23 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 35.4%, 140 basis points better than the prior-year quarter. Operating margin was 21.5%, 140 basis points better than the prior-year quarter. Net margin was 5.5%, 990 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $724.3 million. On the bottom line, the average EPS estimate is $1.26.

Next year's average estimate for revenue is $2.84 billion. The average EPS estimate is $4.88.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 223 members out of 238 rating the stock outperform, and 15 members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 65 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 $72.00.

The article Albemarle Beats on EPS but GAAP Results Lag originally appeared on Fool.com.

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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