Capital Product Partners Increases Sales but Misses Estimates on Earnings

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Capital Product Partners (NAS: CPLP) reported earnings on Jan. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Capital Product Partners beat expectations on revenues and missed expectations on earnings per share.

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

Margins dropped across the board.

Revenue details
Capital Product Partners recorded revenue of $44.0 million. The five analysts polled by S&P Capital IQ looked for sales of $41.7 million. Sales were 52% higher than the prior-year quarter's $29.0 million.

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

EPS details
EPS came in at $0.02. The five earnings estimates compiled by S&P Capital IQ averaged $0.06 per share. GAAP EPS of $0.02 for Q4 were 67% lower than the prior-year quarter's $0.06 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 53.0%, 1,560 basis points worse than the prior-year quarter. Operating margin was 19.7%, 1,650 basis points worse than the prior-year quarter. Net margin was 2.4%, 580 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $40.0 million. On the bottom line, the average EPS estimate is $0.05.

Next year's average estimate for revenue is $160.0 million. The average EPS estimate is $0.22.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 156 members out of 165 rating the stock outperform, and nine members rating it underperform. Among 52 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give Capital Product Partners a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Capital Product Partners is outperform, with an average price target of $7.80.

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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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