Encore Wire (WIRE) Tops Q3 EPS by 16c

Encore Wire (NASDAQ: WIRE) reported Q3 EPS of $0.70, $0.16 better than the analyst estimate of $0.54. Revenue for the quarter came in at $262.8 million versus the consensus estimate of $264.06 million.

Commenting on the results, Daniel L. Jones, Chairman, President and Chief Executive Officer of Encore Wire Corporation, said, “We are pleased with the third quarter results. Unit volumes bounced back in the third quarter after the rough spring weather we endured in the second quarter. On a sequential quarterly comparison, copper units were up 10.1% and aluminum units were up 20.2%. Margins also improved in both copper and aluminum wire sales. We continue to execute our strategy of attempting to be an industry pricing leader, and believe this contributed to our improved margins during the quarter. One of the key metrics to our earnings is the ‘spread’ between the price of copper wire sold and the cost of raw copper purchased in any given period. That spread increased 4.5% in the third quarter of 2015 versus the third quarter of 2014, and 3.3% on a sequential quarter comparison. The copper spread expanded 4.5% as the average price of copper purchased decreased 23.1% in the third quarter of 2015 versus the third quarter of 2014, but the average selling price of wire sold decreased only 15.2%, as a result of somewhat improved pricing discipline in the industry. The aluminum building wire products grew to 10.5% of net sales in the quarter versus 9.4% in the third quarter of 2014."

For earnings history and earnings-related data on Encore Wire (WIRE) click here.

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