The 10-second takeaway
For the quarter ended June 30 (Q2), Kaiser Aluminum missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share dropped. GAAP earnings per share contracted.
Gross margins expanded, operating margins grew, net margins contracted.
Kaiser Aluminum notched revenue of $328.9 million. The six analysts polled by S&P Capital IQ foresaw a top line of $352.8 million on the same basis. GAAP reported sales were 4.7% lower than the prior-year quarter's $345.2 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 $0.91. The six earnings estimates compiled by S&P Capital IQ predicted $0.94 per share. Non-GAAP EPS of $0.91 for Q2 were 14% lower than the prior-year quarter's $1.06 per share. GAAP EPS of $0.98 for Q2 were 10% lower than the prior-year quarter's $1.09 per share.
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 20.5%, 290 basis points better than the prior-year quarter. Operating margin was 13.5%, 200 basis points better than the prior-year quarter. Net margin was 5.7%, 40 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $346.1 million. On the bottom line, the average EPS estimate is $1.00.
Next year's average estimate for revenue is $1.35 billion. The average EPS estimate is $3.94.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 296 members out of 313 rating the stock outperform, and 17 members rating it underperform. Among 75 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 73 give Kaiser Aluminum a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kaiser Aluminum is outperform, with an average price target of $74.00.
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