Quaker Chemical Earnings: Here’s Why the Stock is Rising Now

Quaker Chemical Corporation (NYSE:KWR) delivered a profit and beat Wall Street’s expectations, BUT 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 3.82%.

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Quaker Chemical Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 5.49% to $0.96 in the quarter versus EPS of $0.91 in the year-earlier quarter.

Revenue: Decreased 0.81% to $176.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Quaker Chemical Corporation reported adjusted EPS income of $0.96 per share. By that measure, the company beat the mean analyst estimate of $0.84. It missed the average revenue estimate of $181.19 million.

Quoting Management: Michael F. Barry, Chairman, Chief Executive Officer and President, commented, “We are pleased to report solid results in the first quarter given the challenging global economic environment. We generated good cash flow and our gross margins are continuing to return to more acceptable levels. Our market share gains and acquisitions have helped us to have relatively stable volumes and revenues despite weak conditions in numerous parts of the world, especially in Europe.
Mr. Barry concluded, “Going forward, we believe we will continue to face challenging market conditions around the world with Europe continuing to be the most pronounced. We do, however, remain optimistic about our future and expect 2013 to be another good year for Quaker.”

Key Stats (on next page)…

Revenue increased 1.93% from $172.87 million in the previous quarter. EPS decreased 8.57% from $1.05 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 $1.03 to a profit $0.9. For the current year, the average estimate has moved down from a profit of $3.73 to a profit of $3.58 over the last ninety days.

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