Globe Specialty Metals Increases Sales but Misses Estimates on Earnings
Globe Specialty Metals (NAS: GSM) reported earnings on May 7. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q3), Globe Specialty Metals beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Globe Specialty Metals chalked up revenue of $173.4 million. The seven analysts polled by S&P Capital IQ expected sales of $161.2 million on the same basis. GAAP reported sales were 0.4% higher than the prior-year quarter's $172.8 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 $0.16. The seven earnings estimates compiled by S&P Capital IQ predicted $0.18 per share. GAAP EPS of $0.15 for Q3 were 50% lower than the prior-year quarter's $0.30 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 19.6%, 1,000 basis points worse than the prior-year quarter. Operating margin was 11.5%, 980 basis points worse than the prior-year quarter. Net margin was 6.7%, 680 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $165.6 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $665.0 million. The average EPS estimate is $0.87.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 118 members out of 123 rating the stock outperform, and five members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Globe Specialty Metals 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 Globe Specialty Metals is outperform, with an average price target of $18.88.
Over the decades, small-cap stocks, like Globe Specialty Metals have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Globe Specialty Metals to My Watchlist.
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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.