The 10-second takeaway
For the quarter ended March 31 (Q1), Ternium met expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue improved slightly and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Ternium chalked up revenue of $2.18 billion. The three analysts polled by S&P Capital IQ wanted to see sales of $2.19 billion on the same basis. GAAP reported sales were 1.6% higher than the prior-year quarter's $2.15 billion.
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 $0.81. The one earnings estimate compiled by S&P Capital IQ anticipated $1.09 per share. GAAP EPS of $0.81 for Q1 were 21% lower than the prior-year quarter's $1.03 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 21.5%, 50 basis points worse than the prior-year quarter. Operating margin was 13.0%, 60 basis points worse than the prior-year quarter. Net margin was 7.3%, 220 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.25 billion. On the bottom line, the average EPS estimate is $0.86.
Next year's average estimate for revenue is $9.01 billion. The average EPS estimate is $3.28.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 510 members out of 535 rating the stock outperform, and 25 members rating it underperform. Among 166 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 163 give Ternium a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ternium is outperform, with an average price target of $31.50.
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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.