Ternium (NYSE:TX) Announces Quarterly Earnings Results, Beats Expectations By $0.46 EPS

Key Points

• Ternium beat earnings expectations, reporting quarterly EPS of $1.75 versus the $1.29 consensus estimate. Revenue was $4.34 billion, slightly below analysts’ $4.41 billion forecast.
• Shares rose to $50.29 and are near their 52-week high of $51.73. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $47.94.
• Institutional investors and hedge funds own 11.98% of Ternium, with several funds recently establishing or increasing positions in the steel producer.

Ternium (NYSE:TX - Get Free Report) issued its quarterly earnings results on Tuesday. The basic materials company reported $1.75 earnings per share for the quarter, topping analysts' consensus estimates of $1.29 by $0.46, FiscalAI reports. Ternium had a net margin of 3.66% and a return on equity of 3.70%. The firm had revenue of $4.34 billion during the quarter, compared to analysts' expectations of $4.41 billion.

Ternium Stock Performance

Ternium stock traded up $0.55 during trading hours on Tuesday, reaching $50.29. 1,095,324 shares of the stock were exchanged, compared to its average volume of 361,441. Ternium has a 52-week low of $30.44 and a 52-week high of $51.73. The stock has a market cap of $10.08 billion, a P/E ratio of 17.28, a P/E/G ratio of 0.18 and a beta of 1.25. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.53 and a current ratio of 2.63. The firm's 50 day moving average is $46.50 and its 200 day moving average is $43.80.

Wall Street Analyst Weigh In

A number of research analysts have commented on TX shares. Wall Street Zen upgraded shares of Ternium from a "buy" rating to a "strong-buy" rating in a research note on Sunday, July 12th. Wells Fargo & Company raised Ternium from an "underweight" rating to an "equal weight" rating and raised their price target for the stock from $43.00 to $45.00 in a report on Thursday, July 9th. Itau BBA Securities raised Ternium from a "market perform" rating to an "outperform" rating and set a $59.00 price target on the stock in a report on Sunday, May 24th. Zacks Research cut Ternium from a "strong-buy" rating to a "hold" rating in a research report on Thursday, July 30th. Finally, Bank of America raised Ternium from a "neutral" rating to a "buy" rating and set a $46.00 price objective for the company in a research note on Monday, April 13th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $47.94.

Institutional Investors Weigh In On Ternium

A number of hedge funds have recently added to or reduced their stakes in the company. Banco Bilbao Vizcaya Argentaria S.A. grew its holdings in Ternium by 8.5% during the fourth quarter. Banco Bilbao Vizcaya Argentaria S.A. now owns 11,220 shares of the basic materials company's stock worth $430,000 after acquiring an additional 883 shares during the period. Squarepoint Ops LLC acquired a new position in shares of Ternium during the 4th quarter worth $367,000. New York State Common Retirement Fund acquired a new position in shares of Ternium during the 4th quarter worth $326,000. Mariner LLC purchased a new position in shares of Ternium in the 3rd quarter valued at about $362,000. Finally, Employees Retirement System of Texas lifted its stake in shares of Ternium by 77.0% in the third quarter. Employees Retirement System of Texas now owns 12,075 shares of the basic materials company's stock valued at $419,000 after purchasing an additional 5,252 shares during the period. Institutional investors and hedge funds own 11.98% of the company's stock.

Ternium Company Profile

Ternium SA NYSE: TX is a leading vertically integrated steel producer with operations across the Americas. The company manufactures a broad range of flat and long steel products, including hot‐rolled and cold‐rolled coils, galvanized and tin-coated sheets, plates, rebars, wire rods, bars and structural sections. These products serve diverse end markets such as automotive, construction, energy, industrial machinery, home appliances and packaging.

Established in 2005 through the consolidation of steel assets in Argentina and Mexico, Ternium has grown to operate major production facilities in Argentina, Brazil, Mexico, Colombia, Central America and the United States.

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