Fool Cheat Sheet: Zep Earnings

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Zep (NYS: ZEP) reported earnings on Jan. 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Nov. 30 (Q1), Zep missed slightly on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly, and earnings per share shrank significantly.

Margins dropped across the board.

Revenue details
Zep booked revenue of $153 million. The two analysts polled by S&P Capital IQ looked for revenue of $156 million. Sales were 2.5% lower than the prior-year quarter's $157 million

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.16. The three earnings estimates compiled by S&P Capital IQ averaged $0.16 per share. GAAP EPS of $0.16 for Q1 were 28% lower than the prior-year quarter's $0.22 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 47.5%, 270 basis points worse than the prior-year quarter. Operating margin was 4.8%, 240 basis points worse than the prior-year quarter. Net margin was 2.3%, 80 basis points worse than the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods.

Looking ahead
What does the future hold?

Next quarter's average estimate for revenue is $150 million. On the bottom line, the average EPS estimate is $0.16.

Next year's average estimate for revenue is $676 million. The average EPS estimate is $1.00.

Investor Sentiment
The stock has a five-star rating out of five) at Motley Fool CAPS, with 45 members out of 50 rating the stock outperform, and five members rating it underperform. Among eight CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give Zep a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Zep is outperform, with an average price target of $18.00.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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