Forterra (FRTA) Tops Q2 EPS by 3c, Revenues Miss

Forterra (NASDAQ: FRTA) reported Q2 EPS of $0.11, $0.03 better than the analyst estimate of $0.08. Revenue for the quarter came in at $416.09 million versus the consensus estimate of $419.46 million.

Forterra CEO Jeff Bradley commented, “I am pleased with the progress we made in the Drainage segment in the first half of 2018. We successfully raised our selling prices, and our procurement initiative enabled us to keep our year over year cost increases below market levels. With strong end-market demand fundamentals and a solid backlog, we expect to continue to deliver year over year improvement in our margins in Drainage."

Bradley continued, “Our Water segment has proven to be more challenging than we previously expected in the face of continued higher average scrap costs on both a sequential quarter and year over year basis that have not yet been offset by higher average selling prices. In response, we are taking price and cost actions to better capitalize on strong market demand. Our pricing initiatives are gaining momentum and we are seeing the benefit in our bookings and in our backlog. We are implementing an initiative focused on improving margins through a number of commercial and operational enhancements, including our recently announced senior leadership organizational realignment. Market demand for ductile iron pipe in the first half of 2018 was well above levels seen in 2017, and the outlook for the next twelve months appears strong, as supported by our backlog and discussions with our customers. We are committed to increasing our margins in Water, and I believe that we are taking the right steps.”

For earnings history and earnings-related data on Forterra (FRTA) click here.

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