LSB Industries Earnings: Here’s Why the Stock is Up Now

LSB Industries Inc. (NYSE:LXU) had a loss 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. Shares are up 0.58%.

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LSB Industries Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.02 in the quarter versus EPS of $0.61 in the year-earlier quarter.

Revenue: Decreased 20.79% to $150.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: LSB Industries Inc. reported adjusted EPS loss of $0.02 per share. By that measure, the company missed the mean analyst estimate of $0.09. It missed the average revenue estimate of $168.25 million.

Quoting Management: Jack Golsen, LSB’s Board Chairman and CEO stated, “The past two quarters have been challenging for us as we have worked hard to deal with certain reliability issues in our chemical operations. Now that we have restarted all of the affected facilities after having repaired the mechanical problems, upgraded certain equipment and systems, and augmented our reliability and safety measures, we believe our Chemical Business is well positioned to capitalize on solid market fundamentals for our products. Looking ahead, as we move forward with the planned investment at our El Dorado facility, we feel confident that we can significantly increase our profitability.”

Key Stats (on next page)…

Revenue decreased 14.93% from $177.14 million in the previous quarter. EPS decreased to $-0.02 in the quarter versus EPS of $0.49 in 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 $1.33 to a profit $1.01. For the current year, the average estimate has moved down from a profit of $3.77 to a profit of $2.96 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)