The 10-second takeaway
For the quarter ended March 31 (Q1), GrafTech International whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share shrank significantly.
Gross margins grew, operating margins dropped, and net margins contracted.
GrafTech International logged revenue of $240.9 million. The four analysts polled by S&P Capital IQ predicted sales of $284.7 million on the same basis. GAAP reported sales were 21% lower than the prior-year quarter's $306.1 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 $0.14. The six earnings estimates compiled by S&P Capital IQ anticipated $0.08 per share. GAAP EPS of $0.12 for Q1 were 37% lower than the prior-year quarter's $0.19 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 27.8%, 400 basis points better than the prior-year quarter. Operating margin was 10.0%, 230 basis points worse than the prior-year quarter. Net margin was 7.3%, 160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $344.7 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $1.40 billion. The average EPS estimate is $0.84.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 883 members out of 902 rating the stock outperform, and 19 members rating it underperform. Among 199 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 196 give GrafTech International 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 GrafTech International is outperform, with an average price target of $18.20.
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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. The Motley Fool owns shares of GrafTech International. 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.