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Tenaris Increases Sales but Misses Estimates on Earnings

Thursday - 5/2/2013, 2:00am  ET

Tenaris reported earnings on May 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Tenaris missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue expanded slightly. Non-GAAP earnings per share contracted. GAAP earnings per share dropped.

Gross margins increased, operating margins contracted, net margins dropped.

Revenue details
Tenaris reported revenue of $2.68 billion. The nine analysts polled by S&P Capital IQ hoped for revenue of $2.74 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.72. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.74 per share. Non-GAAP EPS of $0.72 for Q1 were 4.0% lower than the prior-year quarter's $0.75 per share. GAAP EPS of $0.36 for Q1 were 5.3% lower than the prior-year quarter's $0.38 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 38.6%, 10 basis points better than the prior-year quarter. Operating margin was 20.7%, 80 basis points worse than the prior-year quarter. Net margin was 15.9%, 110 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $2.84 billion. On the bottom line, the average EPS estimate is $0.79.

Next year's average estimate for revenue is $11.44 billion. The average EPS estimate is $3.16.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 791 members out of 815 rating the stock outperform, and 24 members rating it underperform. Among 200 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 194 give Tenaris a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tenaris is hold, with an average price target of $45.49.

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This article was originally published as Tenaris Increases Sales but Misses Estimates on Earningson Fool.com

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