GAMCO Investors Beats Expectations but Takes a Step Back Anyway
GAMCO Investors (NYS: GBL) reported earnings on Feb. 7. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), GAMCO Investors missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share shrank significantly.
Gross margins improved, operating margins grew, and net margins dropped.
GAMCO Investors reported revenue of $85.0 million. The one analyst polled by S&P Capital IQ looked for revenue of $91.0 million. Sales were 11% lower than the prior-year quarter's $95.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.89. The two earnings estimates compiled by S&P Capital IQ predicted $0.84 per share. GAAP EPS of $0.89 for Q4 were 15% lower than the prior-year quarter's $1.05 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 61.0%, 820 basis points better than the prior-year quarter. Operating margin was 36.9%, 590 basis points better than the prior-year quarter. Net margin was 27.9%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $80.2 million. On the bottom line, the average EPS estimate is $0.64.
Next year's average estimate for revenue is $356.8 million. The average EPS estimate is $3.24.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 34 members out of 48 rating the stock outperform, and 14 members rating it underperform. Among nine CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give GAMCO Investors a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on GAMCO Investors is outperform, with an average price target of $47.
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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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