The 10-second takeaway
For the quarter ended Nov. 30 (Q2), Texas Industries beat slightly on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew, and earnings per share dropped.
Margins contracted across the board.
Texas Industries notched revenue of $156 million. The eight analysts polled by S&P Capital IQ expected to see net sales of $154 million. Sales were 5.4% higher than the prior-year quarter's $148 million
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at -$0.64. The 10 earnings estimates compiled by S&P Capital IQ predicted -$0.61 per share on the same basis. GAAP EPS were -$0.75 for Q2 against -$0.40 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 1.8%, 630 basis points worse than the prior-year quarter. Operating margin was -7.1%, 270 basis points worse than the prior-year quarter. Net margin was -13.5%, 590 basis points worse than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $132 million. On the bottom line, the average EPS estimate is -$0.81.
Next year's average estimate for revenue is $651 million. The average EPS estimate is -$2.05.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 107 members out of 131 rating the stock outperform, and 24 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Texas Industries a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Texas Industries is hold, with an average price target of $33.33.
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