Zoltek Misses Where It Counts

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Zoltek (NAS: ZOLT) reported earnings on May 3. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q2), Zoltek beat expectations on revenues and missed estimates on earnings per share.

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


Margins grew across the board.

Revenue details
Zoltek reported revenue of $47.0 million. The three analysts polled by S&P Capital IQ expected revenue of $44.7 million on the same basis. GAAP reported sales were 27% higher than the prior-year quarter's $37.1 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 $0.10. The two earnings estimates compiled by S&P Capital IQ averaged $0.11 per share. GAAP EPS were $0.10 for Q2 compared to -$0.15 per share for 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 23.3%, 1,670 basis points better than the prior-year quarter. Operating margin was 12.1%, 2,100 basis points better than the prior-year quarter. Net margin was 7.1%, 2,090 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $46.7 million. On the bottom line, the average EPS estimate is $0.13.

Next year's average estimate for revenue is $189.4 million. The average EPS estimate is $0.68.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 710 members out of 754 rating the stock outperform, and 44 members rating it underperform. Among 148 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 134 give Zoltek a green thumbs-up, and 14 give it a red thumbs-down.

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

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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. He is the 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 don't 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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