Kaiser Aluminum Misses on the Top and Bottom Lines

Kaiser Aluminum (Nasdaq: KALU  ) reported earnings on July 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Kaiser Aluminum missed estimates on revenues and missed estimates on earnings per share.

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

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

Revenue details
Kaiser Aluminum notched revenue of $328.9 million. The six analysts polled by S&P Capital IQ foresaw a top line of $352.8 million on the same basis. GAAP reported sales were 4.7% lower than the prior-year quarter's $345.2 million.

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

EPS details
EPS came in at $0.91. The six earnings estimates compiled by S&P Capital IQ predicted $0.94 per share. Non-GAAP EPS of $0.91 for Q2 were 14% lower than the prior-year quarter's $1.06 per share. GAAP EPS of $0.98 for Q2 were 10% lower than the prior-year quarter's $1.09 per share.

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

Margin details
For the quarter, gross margin was 20.5%, 290 basis points better than the prior-year quarter. Operating margin was 13.5%, 200 basis points better than the prior-year quarter. Net margin was 5.7%, 40 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $346.1 million. On the bottom line, the average EPS estimate is $1.00.

Next year's average estimate for revenue is $1.35 billion. The average EPS estimate is $3.94.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 296 members out of 313 rating the stock outperform, and 17 members rating it underperform. Among 75 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 73 give Kaiser Aluminum a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kaiser Aluminum is outperform, with an average price target of $74.00.

Is Kaiser Aluminum the right metals stock for you? Find out the best way to profit from inflation and gold with a little-known company we profile in, "The Tiny Gold Stock Digging Up Massive Profits." 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. 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.


Read/Post Comments (0) | Recommend This Article (0)

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.

Be the first one to comment on this article.

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: 2571520, ~/Articles/ArticleHandler.aspx, 9/23/2014 6:36:09 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...


Advertisement