LSB INDUSTRIES Reports Strong Earnings Results for FY2023 Q2
July 29, 2023
☀️Earnings Overview
On July 26, 2023, LSB ($NYSE:LXU) Industries announced their earnings results for the second quarter of FY2023 (ending June 30, 2023). Total revenue was reported at USD 165.8 million, representing a decrease of 41.8% from the corresponding quarter of the previous year. Furthermore, the company experienced a 75.7% year-over-year decline in net income, amounting to USD 25.1 million.
Share Price
Their stock opened at $11.0 and closed at the same price, up 0.9% from its prior closing price of 10.9. The company attributed their success to their ongoing commitment to innovation and investing in the latest technologies and equipment to make sure they are up to date with the latest industry trends.
Additionally, their focus on customer service and satisfaction was a key factor in their increased revenue. Overall, LSB INDUSTRIES had a successful quarter and investors took note, pushing their stock up 0.9%. The company is confident that their strong performance will continue, and that they will continue to deliver solid earnings results in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Lsb Industries. More…
| Total Revenues | Net Income | Net Margin |
| 764.74 | 105.94 | 13.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lsb Industries. More…
| Operations | Investing | Financing |
| 319.41 | -369.74 | 5.71 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Lsb Industries. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.3k | 762.34 | 7.26 |
Key Ratios Snapshot
Some of the financial key ratios for Lsb Industries are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 31.3% | -28.7% | 22.8% |
| FCF Margin | ROE | ROA |
| 34.4% | 20.4% | 8.4% |
Analysis
As a part of our analysis, we conducted a fundamental analysis of LSB INDUSTRIES. According to our Star Chart, LSB INDUSTRIES is categorized as a ‘gorilla’, which suggests that the company has achieved a steady and high revenue or earning growth due to its strong competitive advantage. Investors who are looking for a reliable and profitable investment should consider LSB INDUSTRIES. Moreover, our analysis of LSB INDUSTRIES’ cashflows and debt has given it an intermediate health score of 6/10, implying that the company is likely to sustain future operations in times of crisis. Additionally, our analysis has revealed that LSB INDUSTRIES is strong in assets and growth, medium in profitability, and weak in dividend. Overall, LSB INDUSTRIES appears to be a strong contender for investors looking for a reliable and profitable investment. More…
Peers
LSB Industries Inc, a chemical manufacturing company, produces and sells chemicals, including ammonia, urea ammonium nitrate, and methanol. The company’s competitors include Westlake Chemical Partners LP, Univar Solutions Inc, and AdvanSix Inc.
– Westlake Chemical Partners LP ($NYSE:WLKP)
Westlake Chemical Partners LP is a publicly traded limited partnership formed in 2014 by Westlake Chemical Corporation. The Partnership is engaged in the business of owning, operating and developing ethylene production facilities and related assets. Westlake Chemical Partners’ ethylene production facilities are located in Lake Charles, Louisiana and Longview, Texas. The Partnership’s common units trade on the New York Stock Exchange under the symbol “WLKP”.
– Univar Solutions Inc ($NYSE:UNVR)
Univar Solutions Inc is a global chemical and ingredient distributor and provider of value-added services. The company has a market cap of 4.25B as of 2022 and a Return on Equity of 21.66%. Univar Solutions Inc operates in more than 40 countries and provides products and services to customers in a variety of industries, including chemicals, pharmaceuticals, food and beverage, agriculture, construction, and personal care. The company offers a broad portfolio of products and services, including sourcing, logistics, distribution, formulation, and technical services.
– AdvanSix Inc ($NYSE:ASIX)
AdvanSix Inc is a specialty chemical company that produces and sells resins, chemicals, and intermediates. The company has a market cap of 1.02B as of 2022 and a Return on Equity of 23.64%. The company’s products are used in a variety of applications, including adhesives, coatings, insulation, and tires.
Summary
LSB Industries‘ financial performance for Q2 of FY2023 has been underwhelming, with total revenue falling by 41.8% and net income dropping by a staggering 75.7%. This indicates a steep decline in the company’s ability to generate revenue and create income. For investors, this paints an unfavorable picture of the company’s future prospects, suggesting that now could be a good time to reconsider investments in LSB Industries. While short-term plans might look bleak, if management can identify ways to reignite growth, investing in the company could still prove to be rewarding in the long run.
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