The 10-second takeaway
For the quarter ended Feb. 29 (Q3), Texas Industries beat slightly on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP loss per share improved.
Gross margins expanded, operating margins grew, net margins shrank.
Texas Industries booked revenue of $134.6 million. The nine analysts polled by S&P Capital IQ foresaw revenue of $132.8 million on the same basis. GAAP reported sales were 7.0% higher than the prior-year quarter's $125.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.87. The 11 earnings estimates compiled by S&P Capital IQ predicted -$0.81 per share. GAAP EPS were -$0.87 for Q3 compared to -$0.75 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 0.6%, 800 basis points better than the prior-year quarter. Operating margin was -13.1%, 810 basis points better than the prior-year quarter. Net margin was -18.0%, 140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $183.5 million. On the bottom line, the average EPS estimate is -$0.30.
Next year's average estimate for revenue is $655.0 million. The average EPS estimate is -$2.05.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 104 members out of 127 rating the stock outperform, and 23 members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give Texas Industries a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Texas Industries is hold, with an average price target of $31.43.
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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.