Encore Wire (NAS: WIRE) reported earnings on Aug. 7. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Encore Wire missed estimates 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 reported revenue of $264.7 million. The three analysts polled by S&P Capital IQ looked for sales of $292.8 million on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $309.5 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 $0.11. The three earnings estimates compiled by S&P Capital IQ forecast $0.45 per share. GAAP EPS of $0.11 for Q2 were 73% lower than the prior-year quarter's $0.40 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 7.3%, 260 basis points worse than the prior-year quarter. Operating margin was 1.5%, 320 basis points worse than the prior-year quarter. Net margin was 0.9%, 220 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $305.4 million. On the bottom line, the average EPS estimate is $0.38.
Next year's average estimate for revenue is $1.13 billion. The average EPS estimate is $1.12.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 326 members out of 352 rating the stock outperform, and 26 members rating it underperform. Among 81 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 76 give Encore Wire 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 Encore Wire is outperform, with an average price target of $33.00.
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The article Encore Wire Misses on Both Revenue and Earnings originally appeared on Fool.com.
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