The 10-second takeaway
For the quarter ended May 31 (Q4), Texas Industries missed estimates on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share increased. The profit was a surprise, as analysts had predicted a loss.
Margins increased across the board.
Texas Industries logged revenue of $174.6 million. The eight analysts polled by S&P Capital IQ hoped for revenue of $184.3 million on the same basis. GAAP reported sales were 0.7% lower than the prior-year quarter's $175.8 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 $2.15. The nine earnings estimates compiled by S&P Capital IQ forecast -$0.33 per share. GAAP EPS were $2.15 for Q4 versus -$0.33 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 16.3%, 1,260 basis points better than the prior-year quarter. Operating margin was 3.1%, 1,330 basis points better than the prior-year quarter. Net margin was 34.5%, 3,970 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $190.8 million. On the bottom line, the average EPS estimate is -$0.15.
Next year's average estimate for revenue is $702.4 million. The average EPS estimate is -$1.17.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 104 members out of 129 rating the stock outperform, and 25 members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Texas Industries a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Texas Industries is hold, with an average price target of $35.43.
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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.