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.
If you're interested in companies like GrafTech International, you might want to check out the jaw-dropping technology that's about to put 100 million Chinese factory workers out on the street – and the 3 companies that control it. We'll tell you all about them in "The Future is Made in America." Click here for instant access to this free report.
- Add GrafTech International to My Watchlist.