Universal Stainless & Alloy Products Beats Analyst Estimates on EPS

Universal Stainless & Alloy Products (NAS: USAP) reported earnings on Jan. 27. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Universal Stainless & Alloy Products whiffed on revenues and beat expectations on earnings per share.

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

Gross margins expanded, operating margins expanded, net margins dropped.

Revenue details
Universal Stainless & Alloy Products chalked up revenue of $62.2 million. The two analysts polled by S&P Capital IQ wanted to see revenue of $75.6 million. Sales were 21% higher than the prior-year quarter's $51.6 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.72. The four earnings estimates compiled by S&P Capital IQ forecast $0.66 per share on the same basis. GAAP EPS of $0.59 for Q4 were 14% higher than the prior-year quarter's $0.52 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 19.1%, 200 basis points better than the prior-year quarter. Operating margin was 11.3%, 70 basis points better than the prior-year quarter. Net margin was 6.8%, 10 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $120.6 million. On the bottom line, the average EPS estimate is $0.91.

Next year's average estimate for revenue is $433.4 million. The average EPS estimate is $3.77.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 388 members out of 408 rating the stock outperform, and 20 members rating it underperform. Among 113 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 113 give Universal Stainless & Alloy Products a green thumbs-up, and zero give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Universal Stainless & Alloy Products is outperform, with an average price target of $53.33.

Over the decades, small-cap stocks, like Universal Stainless & Alloy Products 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. 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story