The 10-second takeaway
For the quarter ended June 30 (Q2), Ternium missed estimates on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Ternium booked revenue of $2.16 billion. The two analysts polled by S&P Capital IQ wanted to see net sales of $2.20 billion on the same basis. GAAP reported sales were 7.5% lower than the prior-year quarter's $2.33 billion.
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 $0.61. The two earnings estimates compiled by S&P Capital IQ forecast $0.60 per share. GAAP EPS of $0.56 for Q2 were 45% lower than the prior-year quarter's $1.01 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 21.7%, 330 basis points worse than the prior-year quarter. Operating margin was 11.9%, 290 basis points worse than the prior-year quarter. Net margin was 5.1%, 340 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.02 billion. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $8.54 billion. The average EPS estimate is $2.64.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 545 members out of 572 rating the stock outperform, and 27 members rating it underperform. Among 167 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 161 give Ternium a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ternium is outperform, with an average price target of $31.08.
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