National Financial Partners Beats on EPS but GAAP Results Lag
National Financial Partners (NYS: NFP) reported earnings on Feb. 7. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), National Financial Partners met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share shrank significantly.
Gross margins grew, operating margins increased, and net margins shrank.
National Financial Partners chalked up revenue of $289.2 million. The one analyst polled by S&P Capital IQ expected net sales of $288.6 million. Sales were 1.7% higher than the prior-year quarter's $284.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.65. The six earnings estimates compiled by S&P Capital IQ averaged $0.62 per share on the same basis. GAAP EPS of $0.27 for Q4 were 21% lower than the prior-year quarter's $0.34 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 38.2%, 1,310 basis points better than the prior-year quarter. Operating margin was 9.9%, 120 basis points better than the prior-year quarter. Net margin was 3.9%, 150 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $248.4 million. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $1.09 billion. The average EPS estimate is $2.32.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 86 members out of 100 rating the stock outperform, and 14 members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give National Financial Partners a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on National Financial Partners is hold, with an average price target of $15.50.
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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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