The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Ternium met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share grew. GAAP earnings per share contracted to a loss.
Margins dropped across the board.
Ternium recorded revenue of $2.07 billion. The five analysts polled by S&P Capital IQ hoped for revenue of $2.07 billion on the same basis. GAAP reported sales were 5.8% lower than the prior-year quarter's $2.20 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 $0.57. The two earnings estimates compiled by S&P Capital IQ averaged $0.39 per share. Non-GAAP EPS of $0.57 for Q4 were 7.5% higher than the prior-year quarter's $0.53 per share. GAAP EPS were -$1.29 for Q4 compared to $0.53 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 16.6%, 400 basis points worse than the prior-year quarter. Operating margin was 5.9%, 740 basis points worse than the prior-year quarter. Net margin was -12.3%, much worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.21 billion. On the bottom line, the average EPS estimate is $0.50.
Next year's average estimate for revenue is $8.86 billion. The average EPS estimate is $2.96.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 520 members out of 547 rating the stock outperform, and 27 members rating it underperform. Among 172 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 168 give Ternium 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 Ternium is outperform, with an average price target of $28.70.
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