Globe Specialty Metals Outruns Estimates Again
Globe Specialty Metals (NAS: GSM) reported earnings on Feb. 6. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Globe Specialty Metals beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.
Margins improved across the board.
Globe Specialty Metals recorded revenue of $165.5 million. The seven analysts polled by S&P Capital IQ anticipated revenue of $156.8 million. Sales were 6.3% higher than the prior-year quarter's $155.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.22. The seven earnings estimates compiled by S&P Capital IQ forecast $0.19 per share on the same basis. GAAP EPS of $0.18 for Q2 were 20% higher than the prior-year quarter's $0.15 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 21.8%, 90 basis points better than the prior-year quarter. Operating margin was 13.2%, 20 basis points better than the prior-year quarter. Net margin was 8.1%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $170.0 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $676.0 million. The average EPS estimate is $0.96.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 123 members out of 127 rating the stock outperform, and four members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give Globe Specialty Metals 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 Globe Specialty Metals is outperform, with an average price target of $21.88.
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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.