The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Titanium Metals missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Titanium Metals booked revenue of $257.7 million. The five analysts polled by S&P Capital IQ expected to see sales of $284.0 million on the same basis. GAAP reported sales were 1.8% lower than the prior-year quarter's $262.5 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 $0.12. The six earnings estimates compiled by S&P Capital IQ predicted $0.17 per share. GAAP EPS of $0.11 for Q3 were 21% lower than the prior-year quarter's $0.14 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 19.5%, 150 basis points worse than the prior-year quarter. Operating margin was 12.7%, 200 basis points worse than the prior-year quarter. Net margin was 7.2%, 230 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $287.5 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $1.13 billion. The average EPS estimate is $0.66.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,626 members out of 2,716 rating the stock outperform, and 90 members rating it underperform. Among 623 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 612 give Titanium Metals a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Titanium Metals is outperform, with an average price target of $17.67.
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