Houston Wire & Cable Whiffs on Revenues

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Houston Wire & Cable (NAS: HWCC) reported earnings on March 15. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Houston Wire & Cable whiffed on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share didn't change.

Margins increased across the board.

Revenue details
Houston Wire & Cable tallied revenue of $87.5 million. The four analysts polled by S&P Capital IQ expected a top line of $101.8 million on the same basis. GAAP reported sales were 6.5% lower than the prior-year quarter's $93.5 million.

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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 $0.17. The four earnings estimates compiled by S&P Capital IQ anticipated $0.24 per share. GAAP EPS of $0.17 were the same as the prior-year quarter.

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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 22.8%, 170 basis points better than the prior-year quarter. Operating margin was 6.1%, 30 basis points better than the prior-year quarter. Net margin was 3.5%, 40 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $93.9 million. On the bottom line, the average EPS estimate is $0.27.

Next year's average estimate for revenue is $386.5 million. The average EPS estimate is $1.13.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 465 members out of 484 rating the stock outperform, and 19 members rating it underperform. Among 144 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 143 give Houston Wire & Cable a green thumbs-up, and one gives it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Houston Wire & Cable is buy, with an average price target of $17.00.

Over the decades, small-cap stocks, like Houston Wire & Cable 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." Click here for instant access to this free report.

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. The Motley Fool owns shares of Houston Wire & Cable. 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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