Globe Specialty Metals
The 10-second takeaway
For the quarter ended March 31 (Q3), Globe Specialty Metals beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Globe Specialty Metals chalked up revenue of $173.4 million. The seven analysts polled by S&P Capital IQ expected sales of $161.2 million on the same basis. GAAP reported sales were 0.4% higher than the prior-year quarter's $172.8 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 $0.16. The seven earnings estimates compiled by S&P Capital IQ predicted $0.18 per share. GAAP EPS of $0.15 for Q3 were 50% lower than the prior-year quarter's $0.30 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 19.6%, 1,000 basis points worse than the prior-year quarter. Operating margin was 11.5%, 980 basis points worse than the prior-year quarter. Net margin was 6.7%, 680 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $165.6 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $665.0 million. The average EPS estimate is $0.87.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 118 members out of 123 rating the stock outperform, and five members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Globe Specialty Metals a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Globe Specialty Metals is outperform, with an average price target of $18.88.
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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.