LyondellBasell Industries Beats Analyst Estimates on EPS

Seth Jayson, The Motley Fool
Updated

LyondellBasell Industries (NYSE: LYB) reported earnings on July 27. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), LyondellBasell Industries whiffed on revenue and beat expectations on earnings per share.

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

Margins grew across the board.

Revenue details
LyondellBasell Industries reported revenue of $11.25 billion. The 12 analysts polled by S&P Capital IQ wanted to see a top line of $12.72 billion on the same basis. GAAP reported sales were 15% lower than the prior-year quarter's $13.31 billion.

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 $1.65. The 14 earnings estimates compiled by S&P Capital IQ averaged $1.40 per share. GAAP EPS of $1.33 for Q2 were 3.6% lower than the prior-year quarter's $1.38 per share. (The prior-year quarter included -$0.08 per share in earnings from discontinued operations.)

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 14.1%, 210 basis points better than the prior-year quarter. Operating margin was 12.0%, 200 basis points better than the prior-year quarter. Net margin was 6.8%, 80 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $12.21 billion. On the bottom line, the average EPS estimate is $1.30.

Next year's average estimate for revenue is $48.62 billion. The average EPS estimate is $4.75.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 85 members out of 88 rating the stock outperform, and three members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all 17 give LyondellBasell Industries a green thumbs-up.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on LyondellBasell Industries is outperform, with an average price target of $50.73.

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