Noranda Aluminum Holding
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Noranda Aluminum Holding beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Noranda Aluminum Holding reported revenue of $336.8 million. The five analysts polled by S&P Capital IQ hoped for net sales of $325.8 million on the same basis. GAAP reported sales were 16% lower than the prior-year quarter's $400.4 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 eight earnings estimates compiled by S&P Capital IQ anticipated -$0.21 per share. GAAP EPS of $0.05 for Q3 were 89% lower than the prior-year quarter's $0.45 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 4.0%, 850 basis points worse than the prior-year quarter. Operating margin was -3.2%, 980 basis points worse than the prior-year quarter. Net margin was 1.1%, 660 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $329.9 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $1.38 billion. The average EPS estimate is $0.16.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 30 members out of 32 rating the stock outperform, and two members rating it underperform. Among eight CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give Noranda Aluminum Holding a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Noranda Aluminum Holding is outperform, with an average price target of $9.93.
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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. The Motley Fool has no positions in the stocks mentioned above. 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.