Universal Stainless & Alloy (USAP) Misses Q1 EPS by 10c, Revenues Miss

Universal Stainless & Alloy (NASDAQ: USAP) reported Q1 EPS of $0.14, $0.10 worse than the analyst estimate of $0.24. Revenue for the quarter came in at $60.27 million versus the consensus estimate of $65.55 million.

Chairman, President and CEO Dennis Oates commented: “We continued to make progress in the first quarter of 2019, although more slowly than originally planned. Sales increased 5.6% from the fourth quarter of 2018 and included record aerospace sales, which reached more than 70% of total sales, while premium alloy sales grew 15.6% sequentially. First quarter 2019 gross margin of 12.2% also improved from the 2018 fourth quarter but was impacted by lower shipment volume as well as less favorable product mix, with demand for tool steel down substantially as our tool steel customers adjusted their inventories after strong buying in 2018. The combined output of our facilities set a new Company record despite the significant production challenges posed by a tight labor market.

“Even with the slower than anticipated start, we expect 2019 to be another positive year for Universal Stainless with strong top-line growth and margin improvement forecasted as soon as the second quarter. We believe that our record backlog and the increasing benefits of our new bar cell in our Dunkirk facility support our positive outlook.”

For earnings history and earnings-related data on Universal Stainless & Alloy (USAP) click here.

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