Sociedad Quimica y Minera (NYSE:SQM) Shares Gap Down on Disappointing Earnings

Key Points

• Sociedad Quimica y Minera's shares gapped down after reporting weaker than expected quarterly earnings, with earnings per share of $0.31 missing the consensus estimate of $0.52.
• The company experienced a 19.4% decline in revenue compared to the same quarter the previous year, posting $1.04 billion against an estimate of $1.08 billion.
• Analyst ratings are mixed, with a current consensus rating of "Hold" and an average price target of $42.50, reflecting lowered expectations from several research firms.

Shares of Sociedad Quimica y Minera S.A. (NYSE:SQM - Get Free Report) gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $45.05, but opened at $42.66. Sociedad Quimica y Minera shares last traded at $43.47, with a volume of 417,650 shares trading hands.

The basic materials company reported $0.31 earnings per share for the quarter, missing the consensus estimate of $0.52 by ($0.21). Sociedad Quimica y Minera had a return on equity of 11.71% and a net margin of 13.45%.The firm had revenue of $1.04 billion during the quarter, compared to the consensus estimate of $1.08 billion. During the same period in the previous year, the company posted $0.75 EPS. The company's revenue for the quarter was down 19.4% compared to the same quarter last year.

Analyst Ratings Changes

Several research firms have weighed in on SQM. BMO Capital Markets lowered their price target on Sociedad Quimica y Minera from $55.00 to $45.00 and set an "outperform" rating on the stock in a report on Thursday, May 29th. Scotiabank decreased their price objective on shares of Sociedad Quimica y Minera from $50.00 to $45.00 and set a "sector outperform" rating on the stock in a research report on Friday, May 30th. Zacks Research raised shares of Sociedad Quimica y Minera from a "strong sell" rating to a "hold" rating in a research note on Wednesday, August 13th. Finally, JPMorgan Chase & Co. boosted their price target on shares of Sociedad Quimica y Minera from $39.00 to $41.00 and gave the stock a "neutral" rating in a research note on Monday, July 28th. Three investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Sociedad Quimica y Minera presently has a consensus rating of "Hold" and an average price target of $42.50.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Lazard Asset Management LLC lifted its holdings in shares of Sociedad Quimica y Minera by 0.9% in the 4th quarter. Lazard Asset Management LLC now owns 1,965,641 shares of the basic materials company's stock worth $71,470,000 after acquiring an additional 18,255 shares during the last quarter. Kingstone Capital Partners Texas LLC bought a new position in shares of Sociedad Quimica y Minera during the 2nd quarter valued at $67,759,000. Kopernik Global Investors LLC raised its position in Sociedad Quimica y Minera by 20.9% in the 2nd quarter. Kopernik Global Investors LLC now owns 1,842,113 shares of the basic materials company's stock worth $64,971,000 after purchasing an additional 318,445 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in Sociedad Quimica y Minera by 5.5% in the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,460,104 shares of the basic materials company's stock worth $51,498,000 after purchasing an additional 76,378 shares during the last quarter. Finally, Earnest Partners LLC boosted its position in Sociedad Quimica y Minera by 2.3% during the first quarter. Earnest Partners LLC now owns 1,096,049 shares of the basic materials company's stock valued at $43,546,000 after buying an additional 24,710 shares during the period. 12.41% of the stock is currently owned by institutional investors.

Sociedad Quimica y Minera Trading Down 3.3%

The firm's 50-day simple moving average is $37.89 and its 200-day simple moving average is $37.33. The firm has a market capitalization of $12.44 billion, a PE ratio of 20.62 and a beta of 1.03. The company has a quick ratio of 1.96, a current ratio of 2.88 and a debt-to-equity ratio of 0.71.

Sociedad Quimica y Minera Company Profile

Sociedad Química y Minera de Chile SA operates as a mining company worldwide. The company offers specialty plant nutrients, including sodium potassium nitrate, specialty blends, and other specialty fertilizers under Ultrasol, Qrop, Speedfol, Allganic, Ultrasoline, ProP, and Prohydric brands. It also provides iodine and its derivatives for use in medical, agricultural, industrial, and human and animal nutrition products comprising x-ray contrast media, biocides, antiseptics and disinfectants, pharmaceutical intermediates, polarizing films for LCD and LED screens, chemicals, organic compounds, and pigments, as well as added to edible salt to prevent iodine deficiency disorders.

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