The Gory Details on Chemtura's Double Fumble

Seth Jayson, The Motley Fool
Updated

Chemtura (NYS: CHMT) reported earnings on Nov. 5. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Sep. 30 (Q3), Chemtura missed estimates on revenues and missed estimates on earnings per share.

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


Gross margins increased, operating margins increased, net margins were steady.

Revenue details
 Chemtura booked revenue of $743.0 million. The four analysts polled by S&P Capital IQ expected to see a top line of $776.7 million on the same basis. GAAP reported sales were 3.9% lower than the prior-year quarter's $773.0 million.

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 $0.35. The four earnings estimates compiled by S&P Capital IQ predicted $0.36 per share. GAAP EPS of $0.09 were the same as the prior-year quarter.

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 25.8%, 330 basis points better than the prior-year quarter. Operating margin was 9.0%, 330 basis points better than the prior-year quarter. Net margin was 1.2%, about the same as the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $721.3 million. On the bottom line, the average EPS estimate is $0.37.

Next year's average estimate for revenue is $3.05 billion. The average EPS estimate is $1.52.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 19 members out of 22 rating the stock outperform, and three members rating it underperform. Among four CAPS All-Star picks (recommendations by the highest-ranked CAPS members), three give Chemtura a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Chemtura is outperform, with an average price target of $24.00.

The article The Gory Details on Chemtura's Double Fumble 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. The Motley Fool has no positions in the stocks mentioned above. 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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