The 10-second takeaway
For the quarter ended March 31 (Q1), GrafTech International missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. GAAP earnings per share contracted significantly.
Margins dropped across the board.
GrafTech International reported revenue of $253.7 million. The five analysts polled by S&P Capital IQ expected sales of $272.2 million on the same basis. GAAP reported sales were 5.3% higher than the prior-year quarter's $240.9 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 $0.03. The six earnings estimates compiled by S&P Capital IQ forecast $0.01 per share. GAAP EPS of $0.03 for Q1 were 75% lower than the prior-year quarter's $0.12 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 19.1%, 1,000 basis points worse than the prior-year quarter. Operating margin was 6.2%, 510 basis points worse than the prior-year quarter. Net margin was 1.7%, 560 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $294.0 million. On the bottom line, the average EPS estimate is $0.03.
Next year's average estimate for revenue is $1.18 billion. The average EPS estimate is $0.28.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 928 members out of 951 rating the stock outperform, and 23 members rating it underperform. Among 182 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 175 give GrafTech International 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 GrafTech International is hold, with an average price target of $8.80.
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