Noranda Aluminum Holding Goes Negative

Seth Jayson, The Motley Fool
Updated

Noranda Aluminum Holding (NYS: NOR) reported earnings on July 24. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 30 (Q2), Noranda Aluminum Holding beat expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share shrank to a loss. GAAP earnings per share shrank to a loss.


Margins shrank across the board.

Revenue details
 Noranda Aluminum Holding booked revenue of $352.0 million. The three analysts polled by S&P Capital IQ expected to see a top line of $334.8 million on the same basis. GAAP reported sales were 5.3% lower than the prior-year quarter's $371.7 million.

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 -$0.16. The six earnings estimates compiled by S&P Capital IQ forecast -$0.14 per share. Non-GAAP EPS were -$0.16 for Q2 compared to $0.11 per share for the prior-year quarter. GAAP EPS were -$0.18 for Q2 compared to $0.36 per share for the prior-year quarter.

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 5.1%, 560 basis points worse than the prior-year quarter. Operating margin was -1.1%, 780 basis points worse than the prior-year quarter. Net margin was -3.5%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $338.4 million. On the bottom line, the average EPS estimate is -$0.13.

Next year's average estimate for revenue is $1.36 billion. The average EPS estimate is -$0.31.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 40 members out of 43 rating the stock outperform, and three members rating it underperform. Among 11 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), nine give Noranda Aluminum Holding a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Noranda Aluminum Holding is hold, with an average price target of $5.46.

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The article Noranda Aluminum Holding Goes Negative 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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