Shares of SQM closed at $48.40, marking a 0.68% decline from the previous session. This performance lagged behind the gains achieved by the S&P 500, Dow, and Nasdaq. Over the past month, the company's shares have witnessed a significant drop of 13.35%, underperforming not only the broader market but also the Basic Materials sector.
The forthcoming earnings report for SQM, scheduled for November 15, 2023, is anticipated to reveal an EPS of $2.38 and net sales of $2.1 billion, both figures indicating substantial year-over-year declines. Furthermore, Zacks Consensus Estimates for the full year project earnings of $9.44 per share and revenue of $8.61 billion, again reflecting negative year-on-year changes.
Recent adjustments in analyst estimates for SQM point to shifting business trends that could potentially impact future stock performance. Empirical research has demonstrated a direct correlation between such estimate revisions and near-term stock price movements.
InvestingPro Insights
Drawing from real-time data from InvestingPro, SQM's market capitalization is currently standing at $13.82 billion USD. The company's P/E ratio is at a low 4.9, which according to our InvestingPro Tips, indicates that the stock is trading at a low earnings multiple. This could potentially present a buying opportunity for investors looking for undervalued stocks.
In the last twelve months as of Q2 2023, SQM's revenue grew by 63.53%, reaching $10407.54 million USD. Yet, it's important to highlight that the company's revenue growth has been slowing down recently. The gross profit for the same period stood at $5195.22 million USD, reflecting impressive gross profit margins of 49.92%.
InvestingPro Tips also suggest that SQM yields a high return on invested capital and operates with a high return on assets, which was 36.16% in Q2 2023. These metrics indicate efficient use of capital by the company. However, it's worth noting that 2 analysts have revised their earnings downwards for the upcoming period, aligning with the Zacks Consensus Estimates' negative outlook.
SQM's stock performance has been underwhelming over the past month, with a total return of -18.89%. Despite this, InvestingPro's fair value estimate for SQM is $80.83 USD, suggesting potential upside from the current price of $48.73 USD.
In conclusion, while SQM's recent stock performance and projected earnings show a negative trend, certain key metrics indicate potential value. As always, investors are encouraged to consider these insights alongside other factors and their investment goals. For more comprehensive insights and tips, consider exploring InvestingPro's product offerings.
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