Sociedad Quimica y Minera (NYSE:SQM) Shares Gap Down Following Weak 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.

Sociedad Quimica y Minera S.A. (NYSE:SQM - Get Free Report)'s stock price 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 (EPS) for the quarter, missing the consensus estimate of $0.52 by ($0.21). The business had revenue of $1.04 billion for the quarter, compared to the consensus estimate of $1.08 billion. Sociedad Quimica y Minera had a net margin of 11.29% and a return on equity of 9.17%. Sociedad Quimica y Minera's revenue was down 19.4% on a year-over-year basis. During the same period in the previous year, the business posted $0.75 EPS.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on SQM. Scotiabank dropped their price target on shares of Sociedad Quimica y Minera from $50.00 to $45.00 and set a "sector outperform" rating for the company in a research note on Friday, May 30th. Zacks Research upgraded shares of Sociedad Quimica y Minera from a "strong sell" rating to a "hold" rating in a report on Wednesday, August 13th. JPMorgan Chase & Co. lifted their price objective on shares of Sociedad Quimica y Minera from $39.00 to $41.00 and gave the company a "neutral" rating in a report on Monday, July 28th. Finally, BMO Capital Markets lifted their price objective on shares of Sociedad Quimica y Minera from $45.00 to $55.00 and gave the company an "outperform" rating in a report on Thursday. Three research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $45.40.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Soros Fund Management LLC purchased a new position in Sociedad Quimica y Minera during the fourth quarter worth about $5,619,000. Earnest Partners LLC boosted its holdings in Sociedad Quimica y Minera by 1.8% during the fourth quarter. Earnest Partners LLC now owns 1,071,339 shares of the basic materials company's stock worth $38,954,000 after purchasing an additional 18,748 shares during the last quarter. MGO One Seven LLC purchased a new position in Sociedad Quimica y Minera during the fourth quarter worth about $642,000. CANADA LIFE ASSURANCE Co boosted its holdings in Sociedad Quimica y Minera by 121.9% during the fourth quarter. CANADA LIFE ASSURANCE Co now owns 61,519 shares of the basic materials company's stock worth $2,236,000 after purchasing an additional 33,797 shares during the last quarter. Finally, White Knight Strategic Wealth Advisors LLC boosted its holdings in Sociedad Quimica y Minera by 86.5% during the fourth quarter. White Knight Strategic Wealth Advisors LLC now owns 34,244 shares of the basic materials company's stock worth $1,245,000 after purchasing an additional 15,879 shares during the last quarter. 12.41% of the stock is currently owned by hedge funds and other institutional investors.

Sociedad Quimica y Minera Trading Up 1.8%

The firm has a market capitalization of $13.48 billion, a PE ratio of 28.27 and a beta of 1.03. The firm's fifty day moving average is $38.61 and its two-hundred day moving average is $37.45. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.88 and a quick ratio of 1.96.

About Sociedad Quimica y Minera

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.