Anixter International Beats Analyst Estimates on EPS

Anixter International (NYS: AXE) reported earnings today. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 30 (Q4), Anixter International missed estimates on revenues and beat expectations on earnings per share.

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

Gross margins were steady, operating margins grew, net margins improved.

Revenue details
Anixter International reported revenue of $1.50 billion. The eight analysts polled by S&P Capital IQ expected to see a top line of $1.54 billion. Sales were 4.5% higher than the prior-year quarter's $1.43 billion.


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

EPS details
Non-GAAP EPS came in at $1.43. The 10 earnings estimates compiled by S&P Capital IQ anticipated $1.42 per share on the same basis. GAAP EPS of $1.45 for Q4 were 64% higher than the prior-year quarter's $0.88 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 23.3%, about the same as the prior-year quarter. Operating margin was 6.1%, 180 basis points better than the prior-year quarter. Net margin was 3.2%, 100 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.54 billion. On the bottom line, the average EPS estimate is $1.40.

Next year's average estimate for revenue is $6.54 billion. The average EPS estimate is $6.18.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 186 members out of 207 rating the stock outperform, and 21 members rating it underperform. Among 75 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 74 give Anixter International a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Anixter International is outperform, with an average price target of $70.93.

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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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