AM Castle Whiffs on Earnings
AM Castle (NYS: CAS) reported earnings on Mar. 1. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), AM Castle beat expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP loss per share expanded.
Margins shrank across the board.
AM Castle notched revenue of $282.2 million. The three analysts polled by S&P Capital IQ wanted to see sales of $264.7 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $235.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.03. The four earnings estimates compiled by S&P Capital IQ predicted $0.11 per share on the same basis. GAAP EPS were -$0.52 for Q4 versus -$0.07 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 12.5%, 60 basis points worse than the prior-year quarter. Operating margin was -1.6%, 60 basis points worse than the prior-year quarter. Net margin was -4.2%, 360 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $356.0 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $1.47 billion. The average EPS estimate is $1.31.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 174 members out of 186 rating the stock outperform, and 12 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 give AM Castle a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AM Castle is buy, with an average price target of $17.80.
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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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