The 10-second takeaway
For the quarter ended June 30 (Q2), Tenaris beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share grew significantly.
Margins improved across the board.
Tenaris recorded revenue of $2.80 billion. The seven analysts polled by S&P Capital IQ predicted a top line of $2.76 billion on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $2.40 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 $0.78. The seven earnings estimates compiled by S&P Capital IQ averaged $0.77 per share. GAAP EPS of $0.39 for Q2 were 63% higher than the prior-year quarter's $0.24 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 39.5%, 290 basis points better than the prior-year quarter. Operating margin was 22.2%, 500 basis points better than the prior-year quarter. Net margin was 16.5%, 450 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.89 billion. On the bottom line, the average EPS estimate is $0.79.
Next year's average estimate for revenue is $11.21 billion. The average EPS estimate is $3.04.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 811 members out of 835 rating the stock outperform, and 24 members rating it underperform. Among 207 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 199 give Tenaris a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tenaris is outperform, with an average price target of $45.26.
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