Nacco Industries Crushes Earnings Estimates

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Nacco Industries (NYS: NC) reported earnings yesterday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Nacco Industries met expectations on revenues and crushed expectations on earnings per share.

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


Gross margins shrank, operating margins improved, and net margins shrank.

Revenue details
Nacco Industries reported revenue of $803.2 million. The one analyst polled by S&P Capital IQ expected to see revenue of $809.6 million on the same basis. GAAP reported sales were 7.7% higher than the prior-year quarter's $745.5 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 $3.00. The one earnings estimate compiled by S&P Capital IQ predicted $1.98 per share. GAAP EPS of $3.00 for Q1 were 60% lower than the prior-year quarter's $7.48 per share.

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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 18.0%, 30 basis points worse than the prior-year quarter. Operating margin was 3.2%, 10 basis points better than the prior-year quarter. Net margin was 3.1%, 530 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $842.4 million. On the bottom line, the average EPS estimate is $2.58.

Next year's average estimate for revenue is $3.53 billion. The average EPS estimate is $13.45.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 113 members rating the stock outperform, and 10 members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 give Nacco Industries a green thumbs-up, and one gives it a red thumbs-down.

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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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