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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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, backed by a real-money portfolio. The Motley Fool owns shares of GrafTech International Ltd. 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.