Arkema (OTCMKTS:ARKAY) Issues Quarterly Earnings Results, Misses Estimates By $0.32 EPS

Key Points

• Arkema reported earnings of $1.77 per share for the quarter, falling short of expectations by $0.32, although revenues were above consensus at $2.75 billion.
• The company's stock price decreased by 1.2% to $67.19, with analysts giving it an average rating of "Hold" after several downgrades earlier this year.
• Arkema recently cut its dividend payout, indicating adjustments in its financial strategy, despite a high dividend yield of 447.0%.

Arkema (OTCMKTS:ARKAY - Get Free Report) released its earnings results on Thursday. The basic materials company reported $1.77 earnings per share for the quarter, missing the consensus estimate of $2.09 by ($0.32), Zacks reports. Arkema had a return on equity of 6.41% and a net margin of 2.41%. The business had revenue of $2.75 billion for the quarter, compared to analysts' expectations of $2.29 billion.

Arkema Stock Down 1.2%

Shares of ARKAY stock traded down $0.79 during trading hours on Friday, reaching $67.19. The company had a trading volume of 15,024 shares, compared to its average volume of 17,677. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.64 and a current ratio of 2.43. Arkema has a twelve month low of $64.94 and a twelve month high of $98.97. The company has a market capitalization of $5.11 billion, a P/E ratio of 21.67, a price-to-earnings-growth ratio of 0.45 and a beta of 1.05. The stock's fifty day simple moving average is $72.42 and its 200 day simple moving average is $76.59.

Arkema Cuts Dividend

The company also recently disclosed a dividend, which was paid on Thursday, June 12th. Stockholders of record on Friday, May 23rd were issued a $3.4274 dividend. This represents a dividend yield of 447.0%. The ex-dividend date was Thursday, May 22nd. Arkema's dividend payout ratio (DPR) is 67.63%.

Wall Street Analysts Forecast Growth

ARKAY has been the topic of a number of research reports. Sanford C. Bernstein initiated coverage on Arkema in a report on Thursday, April 24th. They issued an "underperform" rating on the stock. Jefferies Financial Group downgraded Arkema to a "hold" rating in a report on Monday, June 16th. Barclays downgraded Arkema from a "strong-buy" rating to a "hold" rating in a report on Tuesday, July 8th. Finally, Citigroup restated a "buy" rating on shares of Arkema in a report on Friday, July 11th. One analyst has rated the stock with a sell rating, two have issued a hold rating, one has issued a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Hold".

Arkema Company Profile

Arkema SA manufactures and sells specialty chemicals and advanced materials worldwide. The company operates in three segments: Adhesive Solutions, Advanced Materials and Coating Solutions, and Intermediates. The Adhesive Solutions segment provides solutions for construction, renovation of buildings, DIY, durable goods, and packaging and non-woven applications; and supplies technologies used in building activities for businesses and individuals, including sealants, tiles, flooring adhesives and waterproofing systems, and technologies used in industry, which include automotive, textiles, glazing, flexible and rigid packaging, and hygiene markets.

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