A. M. Castle
The 10-second takeaway
For the quarter ended June 30 (Q2), A. M. Castle missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly. Non-GAAP earnings per share shrank significantly. GAAP loss per share expanded.
Margins dropped across the board.
A. M. Castle tallied revenue of $273.4 million. The four analysts polled by S&P Capital IQ wanted to see net sales of $296.8 million on the same basis. GAAP reported sales were 17% lower than the prior-year quarter's $329.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.02. The five earnings estimates compiled by S&P Capital IQ anticipated -$0.09 per share. Non-GAAP EPS of $0.02 for Q2 were 82% lower than the prior-year quarter's $0.11 per share. GAAP EPS were -$0.16 for Q2 against -$0.13 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 13.2%, 210 basis points worse than the prior-year quarter. Operating margin was 0.9%, 180 basis points worse than the prior-year quarter. Net margin was -1.4%, 50 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $303.2 million. On the bottom line, the average EPS estimate is -$0.06.
Next year's average estimate for revenue is $1.19 billion. The average EPS estimate is -$0.42.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 159 members out of 173 rating the stock outperform, and 14 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give A. M. Castle a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on A. M. Castle is outperform, with an average price target of $18.00.
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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. The Motley Fool has no position in any of the stocks mentioned. 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.