GrafTech International Beats on Both Top and Bottom Lines

GrafTech International (NYSE: GTI  ) reported earnings on Feb. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), GrafTech International beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share contracted significantly. GAAP earnings per share dropped significantly.

Gross margins shrank, operating margins expanded, net margins contracted.

Revenue details
GrafTech International recorded revenue of $371.0 million. The six analysts polled by S&P Capital IQ looked for a top line of $317.1 million on the same basis. GAAP reported sales were 6.6% higher than the prior-year quarter's $348.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.25. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.21 per share. Non-GAAP EPS of $0.25 for Q4 were 19% lower than the prior-year quarter's $0.31 per share. GAAP EPS of $0.21 for Q4 were 46% lower than the prior-year quarter's $0.39 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 22.8%, 130 basis points worse than the prior-year quarter. Operating margin was 11.4%, 220 basis points better than the prior-year quarter. Net margin was 7.7%, 870 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $292.6 million. On the bottom line, the average EPS estimate is $0.16.

Next year's average estimate for revenue is $1.29 billion. The average EPS estimate is $0.75.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 911 members out of 934 rating the stock outperform, and 23 members rating it underperform. Among 199 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 195 give GrafTech International a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on GrafTech International is hold, with an average price target of $12.00.

If you're interested in companies like GrafTech International, you might want to check out the jaw-dropping technology that's about to put 100 million Chinese factory workers out on the street – and the 3 companies that control it. We'll tell you all about them in "The Future is Made in America." Click here for instant access to this free report.

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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of GrafTech International Ltd. 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.

Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 27, 2013, at 10:39 AM, StarWitchDoctor wrote:

    For some reason the stock price is getting beat up for the second day in the row. Possibly just fickle investors, selling on the news, with prices down...?

    Any input, guys?


Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2280763, ~/Articles/ArticleHandler.aspx, 3/30/2015 1:49:38 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...