Chemtura Earnings: Everything You Must Know Now
Chemtura Corp. (NYSE:CHMT) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Chemtura Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 21.05% to $0.15 in the quarter versus EPS of $0.19 in the year-earlier quarter.
Revenue: Decreased 14.41% to $606 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Chemtura Corp. reported adjusted EPS income of $0.15 per share. By that measure, the company missed the mean analyst estimate of $0.20. It missed the average revenue estimate of $634.85 million.
Quoting Management: “As anticipated, with demand lower than it was a year ago in a number of industrial markets we serve, we were unable to beat prior year performance in the first quarter of 2013 but three of our four segments did improve,” commented Craig A. Rogerson, Chairman, President and CEO of Chemtura. “Chemtura AgroSolutions and Consumer Products segments both continued to deliver year-on-year improvement as expected. Industrial Performance Products performance snapped back after a weaker fourth quarter and delivered their best performance in five quarters, exceeding their performance in both the first and fourth quarters of 2012. Petroleum additives products led this improvement.”
Key Stats (on next page)…
Revenue increased 81.98% from $333 million in the previous quarter. EPS were the same at $0.15 as the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.65 to a profit $0.58. For the current year, the average estimate has moved down from a profit of $1.81 to a profit of $1.59 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)