The 10-second takeaway
For the quarter ended March 31 (Q1), Titanium Metals met expectations on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share dropped.
Gross margin expanded, operating margin increased, and net margin shrank.
Titanium Metals booked revenue of $276.7 million. The four analysts polled by S&P Capital IQ wanted to see a top line of $274.9 million on the same basis. GAAP reported sales were 9.8% higher than the prior-year quarter's $252.0 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 $0.15. The five earnings estimates compiled by S&P Capital IQ anticipated $0.16 per share. GAAP EPS of $0.15 for Q1 were 6.3% lower than the prior-year quarter's $0.16 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 21.1%, 200 basis points better than the prior-year quarter. Operating margin was 15.2%, 150 basis points better than the prior-year quarter. Net margin was 9.3%, 220 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $286.3 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $1.19 billion. The average EPS estimate is $0.74.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,554 members out of 2,643 rating the stock outperform, and 89 members rating it underperform. Among 642 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 629 give Titanium Metals a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Titanium Metals is outperform, with an average price target of $17.17.
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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. Motley Fool newsletter services have recommended buying shares of Titanium Metals. 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.