LSB Industries (NYSE:LXU) is set to give its latest quarterly earnings report on Tuesday, 2024-10-29. Here's what investors need to know before the announcement.
Analysts estimate that LSB Industries will report an earnings per share (EPS) of $-0.06.
LSB Industries bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
Overview of Past Earnings
The company's EPS beat by $0.02 in the last quarter, leading to a 2.74% increase in the share price on the following day.
Here's a look at LSB Industries's past performance and the resulting price change:
| Quarter | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|
| EPS Estimate | 0.11 | 0.05 | 0.04 | -0.12 |
| EPS Actual | 0.13 | 0.08 | -0.07 | -0.10 |
| Price Change % | 3.0% | 13.0% | 2.0% | -2.0% |
Stock Performance
Shares of LSB Industries were trading at $8.66 as of October 25. Over the last 52-week period, shares are down 3.9%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.
Analysts' Take on LSB Industries
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on LSB Industries.
With 3 analyst ratings, LSB Industries has a consensus rating of Buy. The average one-year price target is $10.0, indicating a potential 15.47% upside.
Comparing Ratings with Peers
The below comparison of the analyst ratings and average 1-year price targets of Koppers Hldgs, Rayonier Adv Materials and Ecovyst, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.
The consensus among analysts is an Outperform trajectory for Koppers Hldgs, with an average 1-year price target of $64.0, indicating a potential 639.03% upside. Rayonier Adv Materials is maintaining an Outperform status according to analysts, with an average 1-year price target of $9.5, indicating a potential 9.7% upside. For Ecovyst, analysts project an Buy trajectory, with an average 1-year price target of $11.0, indicating a potential 27.02% upside. Overview of Peer Analysis
The peer analysis summary presents essential metrics for Koppers Hldgs, Rayonier Adv Materials and Ecovyst, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| LSB Industries | Buy | -15.54% | $27.41M | 1.84% |
| Koppers Hldgs | Outperform | -2.43% | $121.60M | 5.28% |
| Rayonier Adv Materials | Outperform | 8.73% | $48.31M | 1.52% |
| Ecovyst | Buy | -0.70% | $53.66M | 1.16% |
Key Takeaway:
LSB Industries ranks at the bottom for Revenue Growth among its peers. It is also at the bottom for Gross Profit. However, it is in the middle for Return on Equity.
Discovering LSB Industries: A Closer Look
LSB Industries Inc is engaged in the manufacturing and sale of chemical products in the United States. The company manufactures and sells chemical products for the agricultural, industrial, and mining markets. Its products include ammonia, fertilizer grade ammonium nitrate (AN and HDAN), and urea ammonia nitrate (UAN) for agricultural applications; high purity and commercial grade ammonia, sulfuric acids, concentrated, blended, and regular nitric acid, mixed nitrating acids, carbon dioxide, and diesel exhaust fluid for industrial applications; and industrial grade AN (LDAN) and AN solutions for mining applications. Its products are sold through distributors and directly to end customers throughout the United States and other parts of North America.
LSB Industries's Financial Performance
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Decline in Revenue: Over the 3 months period, LSB Industries faced challenges, resulting in a decline of approximately -15.54% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Materials sector.
Net Margin: LSB Industries's net margin excels beyond industry benchmarks, reaching 6.82%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): LSB Industries's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.84% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): LSB Industries's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.78%, the company showcases efficient use of assets and strong financial health.
Debt Management: LSB Industries's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.97, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
To track all earnings releases for LSB Industries visit their earnings calendar on our site.
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