Ternium (NYSE:TX) Issues Quarterly Earnings Results

Key Points

• Earnings beat: Ternium reported Q EPS of $1.09 versus the $0.86 consensus while revenue was $3.93 billion (in line with estimates), and EPS rose from $0.55 a year earlier.
• Dividend declared: The company announced a $0.90 per-share dividend payable May 20 (record date May 14), with a dividend payout ratio of 83.33%.
• Market reaction and outlook: Shares climbed to $44.20 on the day, trading above both the 50- and 200-day moving averages, and analysts hold a "Moderate Buy" consensus with a $40.94 average target amid mixed individual ratings.

Ternium (NYSE:TX - Get Free Report) posted its quarterly earnings results on Tuesday. The basic materials company reported $1.09 EPS for the quarter, beating the consensus estimate of $0.86 by $0.23, FiscalAI reports. Ternium had a net margin of 2.72% and a return on equity of 3.06%. The company had revenue of $3.93 billion for the quarter, compared to analyst estimates of $3.93 billion. During the same period in the prior year, the company earned $0.55 earnings per share. The firm's revenue was up .0% on a year-over-year basis.

Ternium Price Performance

Shares of TX traded up $1.44 during mid-day trading on Tuesday, hitting $44.20. 335,966 shares of the company were exchanged, compared to its average volume of 249,871. Ternium has a 1-year low of $27.12 and a 1-year high of $45.57. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.45 and a current ratio of 2.49. The company has a 50 day moving average of $40.99 and a 200-day moving average of $39.79. The stock has a market cap of $8.86 billion, a price-to-earnings ratio of 20.46 and a beta of 1.26.

Ternium Dividend Announcement

The business also recently declared a dividend, which will be paid on Wednesday, May 20th. Investors of record on Thursday, May 14th will be given a dividend of $0.90 per share. This represents a dividend yield of 413.0%. The ex-dividend date is Thursday, May 14th. Ternium's dividend payout ratio is 83.33%.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the stock. The Goldman Sachs Group reiterated a "buy" rating and issued a $49.00 price objective on shares of Ternium in a research report on Friday, April 24th. UBS Group upped their price objective on shares of Ternium from $39.00 to $41.00 and gave the stock a "neutral" rating in a research report on Thursday, April 2nd. Wells Fargo & Company reiterated an "underweight" rating and issued a $36.00 price objective on shares of Ternium in a research report on Wednesday, April 15th. Weiss Ratings upgraded shares of Ternium from a "hold (c)" rating to a "buy (b-)" rating in a research report on Friday, February 20th. Finally, Bank of America upgraded shares of Ternium from a "neutral" rating to a "buy" rating and set a $46.00 price objective for the company in a research report on Monday, April 13th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $40.94.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. Empowered Funds LLC raised its position in shares of Ternium by 10.0% during the 4th quarter. Empowered Funds LLC now owns 95,129 shares of the basic materials company's stock worth $3,633,000 after purchasing an additional 8,630 shares during the last quarter. Quadrature Capital Ltd purchased a new stake in Ternium during the 4th quarter valued at about $331,000. Numerai GP LLC grew its stake in Ternium by 206.4% during the 4th quarter. Numerai GP LLC now owns 40,743 shares of the basic materials company's stock valued at $1,556,000 after acquiring an additional 27,447 shares in the last quarter. Millennium Management LLC grew its stake in Ternium by 386.4% during the 4th quarter. Millennium Management LLC now owns 76,026 shares of the basic materials company's stock valued at $2,903,000 after acquiring an additional 60,397 shares in the last quarter. Finally, Banco Bilbao Vizcaya Argentaria S.A. grew its stake in Ternium by 8.5% during the 4th quarter. Banco Bilbao Vizcaya Argentaria S.A. now owns 11,220 shares of the basic materials company's stock valued at $430,000 after acquiring an additional 883 shares in the last quarter. 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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