The 10-second takeaway
For the quarter ended March 31 (Q1), Ternium met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly. GAAP earnings per share shrank.
Gross margins grew, operating margins dropped, net margins dropped.
Ternium booked revenue of $2.14 billion. The five analysts polled by S&P Capital IQ foresaw a top line of $2.15 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.66. The three earnings estimates compiled by S&P Capital IQ averaged $0.51 per share. GAAP EPS of $0.66 for Q1 were 8.3% lower than the prior-year quarter's $0.72 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 22.3%, 20 basis points better than the prior-year quarter. Operating margin was 12.7%, 30 basis points worse than the prior-year quarter. Net margin was 6.1%, 40 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.26 billion. On the bottom line, the average EPS estimate is $0.72.
Next year's average estimate for revenue is $8.94 billion. The average EPS estimate is $2.86.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 519 members out of 545 rating the stock outperform, and 26 members rating it underperform. Among 152 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 146 give Ternium a green thumbs-up, and six 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 $28.41.
Steel is for real, but gold is shiny and increaingly popular as a hedge among those who fear inflation. Should you move beyond Ternium and look into a precious metal play? Find out how Motley Fool Analysts think you can profit from inflation and gold with a little-known company we profile in, "The Tiny Gold Stock Digging Up Massive Profits." Click here for instant access to this free report.
- Add Ternium to My Watchlist.