Ternium Crushes Earnings Estimates

Ternium (NYSE: TX  ) reported earnings on May 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Ternium met expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank slightly. GAAP earnings per share shrank.

Gross margins grew, operating margins dropped, net margins dropped.

Revenue details
Ternium booked revenue of $2.14 billion. The five analysts polled by S&P Capital IQ foresaw a top line of $2.15 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 $0.66. The three earnings estimates compiled by S&P Capital IQ averaged $0.51 per share. GAAP EPS of $0.66 for Q1 were 8.3% lower than the prior-year quarter's $0.72 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 22.3%, 20 basis points better than the prior-year quarter. Operating margin was 12.7%, 30 basis points worse than the prior-year quarter. Net margin was 6.1%, 40 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $2.26 billion. On the bottom line, the average EPS estimate is $0.72.

Next year's average estimate for revenue is $8.94 billion. The average EPS estimate is $2.86.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 519 members out of 545 rating the stock outperform, and 26 members rating it underperform. Among 152 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 146 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 $28.41.

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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 has no position in any of the stocks mentioned. 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.


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