The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Kaiser Aluminum beat expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue increased significantly, and GAAP earnings per share expanded.
Gross margins dropped, operating margins dropped, and net margins expanded.
Kaiser Aluminum reported revenue of $317.6 million. The five analysts polled by S&P Capital IQ looked for revenue of $309.1 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $265.8 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 $0.52. The five earnings estimates compiled by S&P Capital IQ predicted $0.59 per share on the same basis. GAAP EPS were $0.26 for Q4 versus -$0.14 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 11.7%, 190 basis points worse than the prior-year quarter. Operating margin was 4.3%, 100 basis points worse than the prior-year quarter. Net margin was 1.5%, 240 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $350.7 million. On the bottom line, the average EPS estimate is $0.75.
Next year's average estimate for revenue is $1.39 billion. The average EPS estimate is $3.12.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 293 members rating the stock outperform and 15 members rating it underperform. Among 88 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 86 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 $59.50.
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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