Ternium Beats Expectations but Takes a Step Back Anyway
Ternium (NYS: TX) reported earnings on Aug. 1. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Ternium missed estimates on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Ternium booked revenue of $2.16 billion. The two analysts polled by S&P Capital IQ wanted to see net sales of $2.20 billion on the same basis. GAAP reported sales were 7.5% lower than the prior-year quarter's $2.33 billion.
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 $0.61. The two earnings estimates compiled by S&P Capital IQ forecast $0.60 per share. GAAP EPS of $0.56 for Q2 were 45% lower than the prior-year quarter's $1.01 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 21.7%, 330 basis points worse than the prior-year quarter. Operating margin was 11.9%, 290 basis points worse than the prior-year quarter. Net margin was 5.1%, 340 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.02 billion. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $8.54 billion. The average EPS estimate is $2.64.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 545 members out of 572 rating the stock outperform, and 27 members rating it underperform. Among 167 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 161 give Ternium 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 Ternium is outperform, with an average price target of $31.08.
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The article Ternium Beats Expectations but Takes a Step Back Anyway originally appeared on Fool.com.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. The Motley Fool has no positions in the stocks mentioned above. 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.