Encore Wire Meets on Revenues, Misses on EPS
Encore Wire (NAS: WIRE) reported earnings on April 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Encore Wire met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Encore Wire notched revenue of $280.5 million. The three analysts polled by S&P Capital IQ predicted revenue of $281.6 million on the same basis. GAAP reported sales were 7.5% lower than the prior-year quarter's $303.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.29. The three earnings estimates compiled by S&P Capital IQ predicted $0.49 per share. GAAP EPS of $0.29 for Q1 were 37% lower than the prior-year quarter's $0.46 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 8.7%, 240 basis points worse than the prior-year quarter. Operating margin was 3.3%, 180 basis points worse than the prior-year quarter. Net margin was 2.4%, 110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $299.4 million. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $1.19 billion. The average EPS estimate is $2.00.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 331 members out of 355 rating the stock outperform, and 25 members rating it underperform. Among 96 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 90 give Encore Wire a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Encore Wire is outperform, with an average price target of $36.50.
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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.