The 10-second takeaway
For the quarter ended Dec. 31 (Q4), GrafTech International beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share contracted significantly. GAAP earnings per share dropped significantly.
Gross margins shrank, operating margins expanded, net margins contracted.
GrafTech International recorded revenue of $371.0 million. The six analysts polled by S&P Capital IQ looked for a top line of $317.1 million on the same basis. GAAP reported sales were 6.6% higher than the prior-year quarter's $348.0 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 $0.25. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.21 per share. Non-GAAP EPS of $0.25 for Q4 were 19% lower than the prior-year quarter's $0.31 per share. GAAP EPS of $0.21 for Q4 were 46% lower than the prior-year quarter's $0.39 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 22.8%, 130 basis points worse than the prior-year quarter. Operating margin was 11.4%, 220 basis points better than the prior-year quarter. Net margin was 7.7%, 870 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $292.6 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $1.29 billion. The average EPS estimate is $0.75.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 911 members out of 934 rating the stock outperform, and 23 members rating it underperform. Among 199 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 195 give GrafTech International 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 GrafTech International is hold, with an average price target of $12.00.
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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 owns shares of GrafTech International Ltd. 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.