Metals USA Holdings
The 10-second takeaway
For the quarter ended March 31 (Q1), Metals USA Holdings beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share expanded significantly.
Gross margins contracted, operating margins dropped, and net margins expanded.
Metals USA Holdings logged revenue of $525.3 million. The seven analysts polled by S&P Capital IQ expected revenue of $506.0 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $432.3 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 $0.44. The nine earnings estimates compiled by S&P Capital IQ forecast $0.45 per share. GAAP EPS of $0.44 for Q1 were 33% higher than the prior-year quarter's $0.33 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 12.8%, 140 basis points worse than the prior-year quarter. Operating margin was 6.5%, 70 basis points worse than the prior-year quarter. Net margin was 3.1%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $548.0 million. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $2.06 billion. The average EPS estimate is $1.94.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 24 members out of 26 rating the stock outperform, and two members rating it underperform. Among nine CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give Metals USA Holdings 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 Metals USA Holdings is outperform, with an average price target of $18.44.
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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.