The 10-second takeaway
For the quarter ended Dec. 31 (Q4), AM Castle beat expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP loss per share expanded.
Margins shrank across the board.
AM Castle notched revenue of $282.2 million. The three analysts polled by S&P Capital IQ wanted to see sales of $264.7 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $235.6 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 $0.03. The four earnings estimates compiled by S&P Capital IQ predicted $0.11 per share on the same basis. GAAP EPS were -$0.52 for Q4 versus -$0.07 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 12.5%, 60 basis points worse than the prior-year quarter. Operating margin was -1.6%, 60 basis points worse than the prior-year quarter. Net margin was -4.2%, 360 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $356.0 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $1.47 billion. The average EPS estimate is $1.31.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 174 members out of 186 rating the stock outperform, and 12 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 give AM Castle a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AM Castle is buy, with an average price target of $17.80.
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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.