The 10-second takeaway
For the quarter ended Dec. 31 (Q4), GrafTech International beat expectations on revenues and crushed expectations on earnings per share.
Compared with the prior-year quarter, revenue improved significantly and GAAP earnings per share contracted significantly.
Margins dropped across the board.
GrafTech International logged revenue of $345.8 million. The four analysts polled by S&P Capital IQ expected to see a top line of $334.0 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $281.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.31. The five earnings estimates compiled by S&P Capital IQ averaged $0.24 per share on the same basis. GAAP EPS of $0.39 for Q3 were 34% lower than the prior-year quarter's $0.59 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 24.1%, 130 basis points worse than the prior-year quarter. Operating margin was 9.0%, 440 basis points worse than the prior-year quarter. Net margin was 16.4%, 1,100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $363.4 million. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $1.33 billion. The average EPS estimate is $0.95.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 865 members out of 882 rating the stock outperform, and 18 members rating it underperform. Among 221 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 219 give GrafTech International 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 GrafTech International is buy, with an average price target of $23.00.
Over the decades, small-cap stocks like GrafTech International have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Get instant access to this free report.
- Add GrafTech International to My Watchlist.