GrafTech International Beats Q4 Earnings And Revenues

GrafTech International Ltd. (GTI) specializes in manufacturing and providing high quality natural and synthetic graphite and carbon based products and services. The industrial equipment maker supplies its products to customers engaged in the manufacture of steel, aluminum, silicon metal, automotive products and electronics. The company currently has a $532 million market capitalization.

However, difficult operating conditions, especially in the U.S. and some foreign countries served by the company, are anticipated to hamper the product demand for GrafTech International. Also, approximately 5−10% of graphite electrode shipments for the second half of 2014 has been pushed into 2015, thereby impacting revenue generation from the Industrial Materials segment. Further, the company’s Engineered Solutions segment faces headwinds from weak product introductions as well as from bankruptcy of one of its customers. Investors are eagerly waiting for the company’s latest earnings report.

GrafTech International’s performance over the last four trailing quarters has been disappointing, with negative earnings surprise in three and positive in one quarter. Average earnings surprise is -218.75%.

Currently, GTI has a Zacks Rank #4 (Sell), but that could definitely change after the release of its upcoming earnings report. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: GrafTech International’s adjusted earnings came in at 6 cents per share in fourth-quarter of 2014. The bottom line result was above the Zacks Consensus Estimate of 4 cents loss per share.

Revenue: Revenues surpassed. GrafTech International generated revenues of $260 million, above the Zacks Consensus Estimate of $243 million.

Key Stats to Note: Sales for the Industrial Materials segment declined 13% year over year while for the Engineered Solutions segment were down 26% in the quarter. The company’s cost savings initiatives realized benefits of approximately $50 million in 2014.

Stock Price: GrafTech International shares were down 1.76% ahead of the report while no movement has been recorded in the pre-market trading session.

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