Encore Wire's Latest EPS Top Last Year's by 263%

Before you go, we thought you'd like these...
Before you go close icon

Encore Wire (NAS: WIRE) reported earnings on Feb. 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Encore Wire met expectations on revenues and beat expectations on earnings per share.

Compared with the prior-year quarter, revenue dropped and GAAP earnings per share increased significantly.

Margins increased across the board.

Revenue details
Encore Wire logged revenue of $248.3 million. The three analysts polled by S&P Capital IQ looked for sales of $250.2 million on the same basis. GAAP reported sales were 3.1% lower than the prior-year quarter's $256.1 million.

anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.69. The three earnings estimates compiled by S&P Capital IQ averaged $0.24 per share. GAAP EPS of $0.69 for Q4 were 245% higher than the prior-year quarter's $0.20 per share.

anImage

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 15.6%, 700 basis points better than the prior-year quarter. Operating margin was 9.9%, 730 basis points better than the prior-year quarter. Net margin was 6.6%, 480 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $280.6 million. On the bottom line, the average EPS estimate is $0.36.

Next year's average estimate for revenue is $1.19 billion. The average EPS estimate is $1.75.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 330 members out of 356 rating the stock outperform, and 26 members rating it underperform. Among 104 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 99 give Encore Wire a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Encore Wire is outperform, with an average price target of $29.17.

Over the decades, small-cap stocks like Encore Wire have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Get instant access to this free report.

At the time this article was published

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners