The 10-second takeaway
For the quarter ended March 31 (Q1), GrafTech International whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share shrank significantly.
Gross margins grew, operating margins dropped, and net margins contracted.
GrafTech International logged revenue of $240.9 million. The four analysts polled by S&P Capital IQ predicted sales of $284.7 million on the same basis. GAAP reported sales were 21% lower than the prior-year quarter's $306.1 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 $0.14. The six earnings estimates compiled by S&P Capital IQ anticipated $0.08 per share. GAAP EPS of $0.12 for Q1 were 37% lower than the prior-year quarter's $0.19 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 27.8%, 400 basis points better than the prior-year quarter. Operating margin was 10.0%, 230 basis points worse than the prior-year quarter. Net margin was 7.3%, 160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $344.7 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $1.40 billion. The average EPS estimate is $0.84.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 883 members out of 902 rating the stock outperform, and 19 members rating it underperform. Among 199 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 196 give GrafTech International a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on GrafTech International is outperform, with an average price target of $18.20.
Over the decades, small-cap stocks like GrafTech International have produced 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: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add GrafTech International to My Watchlist.