GrafTech tops Q2 revenue expectations
EAF•Drivers of the quarter
GrafTech said higher sales volume reflected solid customer demand and disciplined commercial execution. Net sales fell as higher volume was more than offset by a 7% year-over-year decline in weighted-average realized price due to competitive pressures.
The company also pointed to a favorable sales mix, saying strong U.S. sales volume growth partially mitigated overall pricing pressure, as the U.S. remains the strongest region for graphite electrode pricing.
Analyst view and coverage
The current average analyst rating on the shares is "hold," with 1 "strong buy" or "buy," 2 "hold," and 1 "sell" or "strong sell."
Wall Street's median 12-month price target for GrafTech International Ltd is $7.00, about 1.4% above its July 23 closing price of $7.10.
Q2 results beat revenue expectations
GrafTech said second-quarter sales volume rose 8% year over year, while net sales fell 3% year over year. The company said higher volume was offset by lower realized pricing, but the result still beat analyst expectations.
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Sales | Beat | $127.36 mln | $125 mln (3 Analysts) |
| Q2 Adjusted Loss Per Share | Beat | $1.47 | $1.65 (1 Analyst) |
| Q2 Loss Per Share | $1.54 | ||
| Q2 Adjusted Net Loss | Beat | $38.58 mln | $43 mln (1 Analyst) |
| Q2 Net Loss | $40.47 mln |
