Titanium Metals' Earnings Beat Last Year's by 23%

Seth Jayson, The Motley Fool
Updated

Titanium Metals (NYS: TIE) reported earnings on Feb. 29. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Titanium Metals missed estimates on revenue and met expectations on earnings per share.

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

Gross margin dropped, operating margin increased, and net margin improved.

Revenue details
Titanium Metals reported revenue of $258.7 million. The four analysts polled by S&P Capital IQ predicted a top line of $275.6 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $217.3 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 $0.16. The five earnings estimates compiled by S&P Capital IQ forecast $0.16 per share. GAAP EPS of $0.16 for Q4 were 23% higher than the prior-year quarter's $0.13 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 22.2%, 110 basis points worse than the prior-year quarter. Operating margin was 16.0%, 40 basis points better than the prior-year quarter. Net margin was 11.1%, 30 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $278.1 million. On the bottom line, the average EPS estimate is $0.16.

Next year's average estimate for revenue is $1.22 billion. The average EPS estimate is $0.75.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS. Among 733 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 721 give Titanium Metals a green thumbs-up, and 12 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Titanium Metals is outperform, with an average price target of $18.50.

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At the time thisarticle 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. Motley Fool newsletter services have recommended buying shares of Titanium Metals. 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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