The 10-second takeaway
For the quarter ended June 30 (Q2), GrafTech International beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue stayed the same. GAAP earnings per share dropped significantly.
Margins dropped across the board.
GrafTech International notched revenue of $315.6 million. The five analysts polled by S&P Capital IQ looked for revenue of $293.7 million 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 $0.03. The six earnings estimates compiled by S&P Capital IQ anticipated $0.03 per share. GAAP EPS of $0.03 for Q2 were 90% lower than the prior-year quarter's $0.29 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 16.2%, much worse than the prior-year quarter. Operating margin was 5.3%, 950 basis points worse than the prior-year quarter. Net margin was 1.5%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $310.9 million. On the bottom line, the average EPS estimate is $0.07.
Next year's average estimate for revenue is $1.19 billion. The average EPS estimate is $0.20.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 945 members out of 968 rating the stock outperform, and 23 members rating it underperform. Among 194 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 187 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 $8.10.
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