Knoll Whiffs on Revenues

Knoll (NYS: KNL) reported earnings on Feb. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Knoll whiffed on revenues and missed expectations on earnings per share.

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

Gross margins shrank, operating margins contracted, net margins grew.

Revenue details
Knoll tallied revenue of $223.1 million. The four analysts polled by S&P Capital IQ predicted revenue of $250.5 million. Sales were 6.9% lower than the prior-year quarter's $239.8 million.


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

EPS details
Non-GAAP EPS came in at $0.30. The four earnings estimates compiled by S&P Capital IQ anticipated $0.37 per share on the same basis. GAAP EPS of $0.37 for Q4 were 54% higher than the prior-year quarter's $0.24 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 31.7%, 50 basis points worse than the prior-year quarter. Operating margin was 10.0%, 80 basis points worse than the prior-year quarter. Net margin was 7.8%, 330 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $230.1 million. On the bottom line, the average EPS estimate is $0.25.

Next year's average estimate for revenue is $992.9 million. The average EPS estimate is $1.20.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 94 members out of 102 rating the stock outperform, and eight members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Knoll a green thumbs-up, and one gives it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Knoll is outperform, with an average price target of $22.67.

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At the time thisarticle 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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