Graham Misses on the Top and Bottom Lines
Graham (ASE: GHM) reported earnings on Jan. 27. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Graham missed on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly, and GAAP earnings per share increased significantly.
Margins increased across the board.
Graham reported revenue of $24.3 million. The three analysts polled by S&P Capital IQ predicted revenue of $25.7 million. Sales were 27% higher than the prior-year quarter's $19.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.16. The three earnings estimates compiled by S&P Capital IQ forecast $0.24 per share. GAAP EPS of $0.16 for Q3 were 100% higher than the prior-year quarter's $0.08 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 26.6%, 130 basis points better than the prior-year quarter. Operating margin was 10.9%, 80 basis points better than the prior-year quarter. Net margin was 6.7%, 230 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $24.3 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $108.9 million. The average EPS estimate is $1.32.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,073 members out of 1,103 rating the stock outperform, and 30 members rating it underperform. Among 226 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 221 give Graham 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 Graham is outperform, with an average price target of $25.67.
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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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