Globe Specialty Metals
The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Globe Specialty Metals beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.
Margins improved across the board.
Globe Specialty Metals recorded revenue of $165.5 million. The seven analysts polled by S&P Capital IQ anticipated revenue of $156.8 million. Sales were 6.3% higher than the prior-year quarter's $155.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.22. The seven earnings estimates compiled by S&P Capital IQ forecast $0.19 per share on the same basis. GAAP EPS of $0.18 for Q2 were 20% higher than the prior-year quarter's $0.15 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 21.8%, 90 basis points better than the prior-year quarter. Operating margin was 13.2%, 20 basis points better than the prior-year quarter. Net margin was 8.1%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $170.0 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $676.0 million. The average EPS estimate is $0.96.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 123 members out of 127 rating the stock outperform, and four members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give Globe Specialty Metals a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Globe Specialty Metals is outperform, with an average price target of $21.88.
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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. 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.