The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Tenaris met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins increased, net margins increased.
Tenaris chalked up revenue of $2.66 billion. The 10 analysts polled by S&P Capital IQ foresaw sales of $2.69 billion on the same basis. GAAP reported sales were 6.5% higher than the prior-year quarter's $2.49 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 $0.74. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.74 per share. GAAP EPS of $0.37 for Q3 were 32% higher than the prior-year quarter's $0.28 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 37.6%, 30 basis points worse than the prior-year quarter. Operating margin was 22.0%, 250 basis points better than the prior-year quarter. Net margin was 16.4%, 340 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.87 billion. On the bottom line, the average EPS estimate is $0.81.
Next year's average estimate for revenue is $11.00 billion. The average EPS estimate is $3.07.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 806 members out of 830 rating the stock outperform, and 24 members rating it underperform. Among 215 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 208 give Tenaris a green thumbs-up, and seven 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 $47.06.
Is Tenaris the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.
- Add Tenaris to My Watchlist.
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.