Encore Wire (Nasdaq: WIRE) is expected to report Q3 earnings on Oct. 24. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Encore Wire's revenues will compress -2.4% and EPS will wither -35.6%.
The average estimate for revenue is $311.8 million. On the bottom line, the average EPS estimate is $0.38.
Revenue details
Last quarter, Encore Wire reported revenue of $264.7 million. GAAP reported sales were 14% lower than the prior-year quarter's $309.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
Last quarter, EPS came in at $0.11. GAAP EPS of $0.11 for Q2 were 73% lower than the prior-year quarter's $0.40 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Recent performance
For the preceding quarter, gross margin was 7.3%, 260 basis points worse than the prior-year quarter. Operating margin was 1.5%, 320 basis points worse than the prior-year quarter. Net margin was 0.9%, 220 basis points worse than the prior-year quarter.
Looking ahead
The full year's average estimate for revenue is $1.13 billion. The average EPS estimate is $1.06.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 325 members out of 351 rating the stock outperform, and 26 members rating it underperform. Among 84 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 79 give Encore Wire a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Encore Wire is outperform, with an average price target of $33.00.
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