EAF Earnings Prediction
The chart below shows how EAF performed 10 days before and after its earnings report, based on data from the past quarters. Typically, EAF sees a +8.79% change in stock price 10 days leading up to the earnings, and a -3.32% change 10 days following the report. On the earnings day itself, the stock moves by -5.02%. This data can give you a slight idea of what to expect for the next quarter's release.
EAF Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
130.65M
-17.82%
-4.86%
Gross Margin
-9.24%
-1162.07%
-418.62%
Operating Margin
-20.19%
76.95%
979.68%
Net Margin
-27.61%
94.03%
157.08%
EPS
-0.14
-55.56%
133.33%
No Data Available
EAF Earnings Analysis
GrafTech International Ltd. Corporation (EAF.N) Earnings Conference Call
Positive
Sales Volume Increase: 1. Sales Volume Growth: GrafTech's sales volume increased by 9% year-over-year in Q3 2024, marking a 13% increase on a year-to-date basis, demonstrating strong demand despite a challenging market environment.
Cost Reduction Success: 2. Cost Reduction Achievements: The company achieved a 28% year-over-year decrease in cash COGS per metric ton, exceeding expectations and leading to an updated full-year guidance for a 20% decline in cash COGS for 2024.
Free Cash Flow Generation: 3. Positive Free Cash Flow: GrafTech generated $20 million in free cash flow during the third quarter, reflecting effective cash management and operational efficiency.
Enhanced Financial Flexibility: 4. Improved Liquidity Position: Following a new financing transaction, GrafTech's total liquidity is projected to increase to approximately $529 million, significantly enhancing its financial flexibility.
Steel Demand Growth Projection: 5. Long-term Growth Outlook: The World Steel Association projects a 3% growth in steel demand outside of China for 2025, which GrafTech anticipates will drive further sales volume growth and recovery in the graphite electrode market.
Negative
Net Loss Decline: 1. Net Loss: GrafTech reported a net loss of $36 million or $0.14 per share for Q3 2024, indicating a significant decline in profitability compared to the previous year.
Declining Adjusted EBITDA: 2. Declining Adjusted EBITDA: The company experienced an adjusted EBITDA of negative $6 million in Q3 2024, a drop from $1 million in the same quarter of 2023, reflecting ongoing pricing pressures and a shift in sales mix.
Sales Volume and Pricing Impact: 3. Sales Volume Decline: Despite a year-over-year sales volume increase of 9%, the overall net sales decreased by 18% compared to Q3 2023, driven by lower pricing and a shift from long-term agreements to non-long-term agreements.
Low Capacity Utilization Rate: 4. Weak Capacity Utilization: GrafTech's production volume was 19,000 metric tons in Q3 2024, resulting in a capacity utilization rate of only 46%, the lowest in several quarters, due to planned maintenance shutdowns.
Non-LTA Sales Price Drop: 5. Price Decline in Non-LTA Sales: The weighted average realized price for non-long-term agreement sales fell by 24% year-over-year and 5% sequentially, contributing to the overall revenue decline.
EAF FAQs
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EAF Earning Call Sentiment
GrafTech International Ltd. (EAF) Q3 2024 Earnings Call Transcript
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00:00
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EAF.N
-1.2%Positive
The earnings call summary presents a mixed picture. Basic financial performance shows a decline in net sales and adjusted EBITDA, but free cash flow and cost control are strong. Product development is positive with EV market progress. Market strategy and shareholder return plans are stable. The Q&A reveals cautious optimism about negotiations and profitability, despite weak pricing. Critical factors like strong cash flow and cost control offset weak sales and pricing. Without market cap info, a neutral prediction is prudent, balancing positive and negative aspects.