The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Encore Wire whiffed on revenues and missed estimates 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.
Encore Wire chalked up revenue of $269.2 million. The two analysts polled by S&P Capital IQ looked for a top line of $311.8 million on the same basis. GAAP reported sales were 16% lower than the prior-year quarter's $319.4 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 $0.27. The two earnings estimates compiled by S&P Capital IQ predicted $0.38 per share. GAAP EPS of $0.27 for Q3 were 54% lower than the prior-year quarter's $0.59 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 9.0%, 280 basis points worse than the prior-year quarter. Operating margin was 3.1%, 360 basis points worse than the prior-year quarter. Net margin was 2.1%, 220 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $269.2 million. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $1.13 billion. The average EPS estimate is $1.06.
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), 80 give Encore Wire a green thumbs-up, and four 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 $34.00.
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