Metals USA Holdings Increases Sales but Misses Estimates on Earnings

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Metals USA Holdings (NYS: MUSA) reported earnings on April 18. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Metals USA Holdings beat expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share expanded significantly.


Gross margins contracted, operating margins dropped, and net margins expanded.

Revenue details
Metals USA Holdings logged revenue of $525.3 million. The seven analysts polled by S&P Capital IQ expected revenue of $506.0 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $432.3 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.44. The nine earnings estimates compiled by S&P Capital IQ forecast $0.45 per share. GAAP EPS of $0.44 for Q1 were 33% higher than the prior-year quarter's $0.33 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 12.8%, 140 basis points worse than the prior-year quarter. Operating margin was 6.5%, 70 basis points worse than the prior-year quarter. Net margin was 3.1%, 20 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $548.0 million. On the bottom line, the average EPS estimate is $0.55.

Next year's average estimate for revenue is $2.06 billion. The average EPS estimate is $1.94.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 24 members out of 26 rating the stock outperform, and two members rating it underperform. Among nine CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give Metals USA Holdings a green thumbs-up, and one gives it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Metals USA Holdings is outperform, with an average price target of $18.44.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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