Ternium (NYSE:TX) Hits New 12-Month Low on Disappointing Earnings

Ternium S.A. (NYSE:TX)’s stock price hit a new 52-week low on Wednesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $34.51 and last traded at $35.20, with a volume of 34973 shares trading hands. The stock had previously closed at $35.46.

The basic materials company reported ($0.11) earnings per share (EPS) for the quarter, missing the consensus estimate of $1.19 by ($1.30). The business had revenue of $4.51 billion for the quarter, compared to the consensus estimate of $4.57 billion. Ternium had a net margin of 3.53% and a return on equity of 10.21%. Ternium’s revenue was up 16.6% on a year-over-year basis. During the same period in the previous year, the business posted $3.19 EPS.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on TX. StockNews.com downgraded shares of Ternium from a “strong-buy” rating to a “buy” rating in a research note on Friday, July 12th. The Goldman Sachs Group lifted their target price on shares of Ternium from $49.00 to $54.00 and gave the stock a “buy” rating in a research note on Thursday, April 4th. Finally, JPMorgan Chase & Co. lifted their target price on shares of Ternium from $54.00 to $56.00 and gave the stock an “overweight” rating in a research note on Tuesday, May 28th. Four equities research analysts have rated the stock with a buy rating, Based on data from MarketBeat, the company has a consensus rating of “Buy” and an average price target of $52.33.

Institutional Investors Weigh In On Ternium

A number of large investors have recently bought and sold shares of the stock. Lazard Asset Management LLC grew its holdings in Ternium by 1.8% in the first quarter. Lazard Asset Management LLC now owns 3,196,107 shares of the basic materials company’s stock worth $133,021,000 after purchasing an additional 56,379 shares during the period. Ninety One UK Ltd grew its holdings in Ternium by 0.6% in the second quarter. Ninety One UK Ltd now owns 1,691,042 shares of the basic materials company’s stock worth $63,499,000 after purchasing an additional 10,375 shares during the period. Contrarian Capital Management L.L.C. grew its holdings in Ternium by 8.9% in the fourth quarter. Contrarian Capital Management L.L.C. now owns 1,117,981 shares of the basic materials company’s stock worth $47,481,000 after purchasing an additional 91,629 shares during the period. Oaktree Capital Management LP grew its holdings in Ternium by 7.4% in the fourth quarter. Oaktree Capital Management LP now owns 958,237 shares of the basic materials company’s stock worth $40,696,000 after purchasing an additional 66,082 shares during the period. Finally, Wellington Management Group LLP grew its holdings in Ternium by 25.6% in the fourth quarter. Wellington Management Group LLP now owns 248,980 shares of the basic materials company’s stock worth $10,574,000 after purchasing an additional 50,743 shares during the period. 11.98% of the stock is currently owned by institutional investors and hedge funds.

Ternium Price Performance

The stock has a market capitalization of $7.05 billion, a price-to-earnings ratio of 10.52, a PEG ratio of 0.24 and a beta of 1.79. The business’s fifty day moving average price is $38.40 and its 200-day moving average price is $39.86. The company has a debt-to-equity ratio of 0.08, a current ratio of 3.32 and a quick ratio of 1.98.

About Ternium

Ternium SA, together with its subsidiaries, manufactures and distributes steel products in Mexico, Southern Region, Brazil, and internationally. It operates through three segments: Steel, Mining, and Usiminas. The Steel segment offers slabs, hot and cold rolled products, coated products, roll formed and tubular products, bars, billets, and other products.