The Gory Details on Metals USA Holdings's Double Miss

Seth Jayson, The Motley Fool
Updated

Metals USA Holdings (NYS: MUSA) reported earnings on Feb. 6. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Dec. 31 (Q4), Metals USA Holdings missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share shrank significantly.


Margins shrank across the board.

Revenue details
 Metals USA Holdings notched revenue of $437.5 million. The 12 analysts polled by S&P Capital IQ anticipated revenue of $454.7 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.27. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.30 per share. GAAP EPS of $0.10 for Q4 were 73% lower than the prior-year quarter's $0.37 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 12.2%, 50 basis points worse than the prior-year quarter. Operating margin was 4.1%, 180 basis points worse than the prior-year quarter. Net margin was 0.8%, 230 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $503.4 million. On the bottom line, the average EPS estimate is $0.46.

Next year's average estimate for revenue is $2.10 billion. The average EPS estimate is $1.97.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 22 members out of 25 rating the stock outperform, and three members rating it underperform. Among nine CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give Metals USA Holdings a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Metals USA Holdings is outperform, with an average price target of $18.46.

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The article The Gory Details on Metals USA Holdings's Double Miss 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 position in any of the stocks mentioned. 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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