Texas Industries Makes Analysts Look Bad
Texas Industries (NYS: TXI) reported earnings on July 11. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended May 31 (Q4), Texas Industries missed estimates on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share increased. The profit was a surprise, as analysts had predicted a loss.
Margins increased across the board.
Texas Industries logged revenue of $174.6 million. The eight analysts polled by S&P Capital IQ hoped for revenue of $184.3 million on the same basis. GAAP reported sales were 0.7% lower than the prior-year quarter's $175.8 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 $2.15. The nine earnings estimates compiled by S&P Capital IQ forecast -$0.33 per share. GAAP EPS were $2.15 for Q4 versus -$0.33 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 16.3%, 1,260 basis points better than the prior-year quarter. Operating margin was 3.1%, 1,330 basis points better than the prior-year quarter. Net margin was 34.5%, 3,970 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $190.8 million. On the bottom line, the average EPS estimate is -$0.15.
Next year's average estimate for revenue is $702.4 million. The average EPS estimate is -$1.17.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 104 members out of 129 rating the stock outperform, and 25 members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Texas Industries a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Texas Industries is hold, with an average price target of $35.43.
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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.