Graham Beats on Both Top and Bottom Lines
Graham (AMEX: GHM) reported earnings on May 31. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q4), Graham beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share grew significantly.
Margins expanded across the board.
Graham logged revenue of $30.9 million. The five analysts polled by S&P Capital IQ hoped for sales of $29.8 million on the same basis. GAAP reported sales were 53% higher than the prior-year quarter's $20.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.41. The five earnings estimates compiled by S&P Capital IQ predicted $0.31 per share. GAAP EPS of $0.41 for Q4 were much higher than the prior-year quarter's $0.04 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.1%, 880 basis points better than the prior-year quarter. Operating margin was 18.4%, much better than the prior-year quarter. Net margin was 13.3%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $25.4 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $111.9 million. The average EPS estimate is $1.12.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,041 members out of 1,069 rating the stock outperform, and 28 members rating it underperform. Among 164 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 160 give Graham a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Graham is outperform, with an average price target of $26.75.
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The article Graham Beats on Both Top and Bottom Lines originally appeared on Fool.com.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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. 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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