Ternium (NYSE:TX) Releases Earnings Results, Beats Estimates By $0.62 EPS

Key Points

• Ternium reported earnings of $1.28 per share for the quarter, exceeding analysts' expectations of $1.04, while also experiencing a 12.6% decrease in revenue compared to the same period last year.
• Shares of Ternium traded down 0.5% to $31.58, with institutional investors and hedge funds owning approximately 11.98% of the company's stock.
• Several analysts have downgraded Ternium's stock ratings, with Goldman Sachs lowering its price target from $39.00 to $35.00 and Bank of America issuing an "underperform" rating with a target of $25.00.

Ternium (NYSE:TX - Get Free Report) announced its quarterly earnings data on Tuesday. The basic materials company reported $1.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.66 by $0.62, Zacks reports. Ternium had a return on equity of 1.95% and a net margin of 3.66%. The business had revenue of $3.95 billion during the quarter, compared to analyst estimates of $4.19 billion. During the same period last year, the company earned ($0.11) earnings per share. Ternium's quarterly revenue was down 12.6% compared to the same quarter last year.

Ternium Stock Performance

Shares of NYSE:TX traded down $0.54 during midday trading on Friday, hitting $32.04. The company's stock had a trading volume of 212,041 shares, compared to its average volume of 229,600. The stock has a market capitalization of $6.42 billion, a price-to-earnings ratio of 10.57 and a beta of 1.53. The stock's 50 day simple moving average is $30.41 and its 200 day simple moving average is $29.76. Ternium has a fifty-two week low of $24.00 and a fifty-two week high of $37.98. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.76 and a current ratio of 2.68.

Institutional Investors Weigh In On Ternium

A hedge fund recently raised its stake in Ternium stock. Millennium Management LLC raised its stake in shares of Ternium S.A. (NYSE:TX - Free Report) by 569.4% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 126,827 shares of the basic materials company's stock after purchasing an additional 107,880 shares during the quarter. Millennium Management LLC owned 0.06% of Ternium worth $3,952,000 as of its most recent filing with the Securities and Exchange Commission. Hedge funds and other institutional investors own 11.98% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the company. Morgan Stanley lowered Ternium from an "overweight" rating to an "equal weight" rating and set a $34.00 price objective for the company. in a report on Monday, July 21st. Bank of America restated an "underperform" rating and set a $25.00 target price on shares of Ternium in a report on Monday, April 7th. Finally, Scotiabank cut their target price on Ternium from $53.00 to $41.00 and set a "sector outperform" rating on the stock in a report on Thursday, July 17th. One investment analyst has rated the stock with a sell rating, three have given a hold rating and two have issued a buy rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $33.40.

About Ternium

Ternium SA, together with its subsidiaries, manufactures and distributes steel products in Mexico, Southern Region, Brazil, and internationally. It operates through three segments: Steel, Mining, and Usiminas. The Steel segment offers slabs, hot and cold rolled products, coated products, roll formed and tubular products, bars, billets, and other products.