Young Innovations Beats Analyst Estimates on EPS

Seth Jayson, The Motley Fool
Updated

Young Innovations (NAS: YDNT) reported earnings on Feb. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Young Innovations beat slightly on revenues and beat expectations on earnings per share.

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

Gross margins contracted, operating margins improved, and net margins grew.

Revenue details
Young Innovations booked revenue of $26.7 million. The one analyst polled by S&P Capital IQ predicted a top line of $26.4 million. Sales were 3.2% higher than the prior-year quarter's $25.9 million.

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

EPS details
EPS came in at $0.54. The one earnings estimate compiled by S&P Capital IQ predicted $0.50 per share. GAAP EPS of $0.54 for Q4 were 15% higher than the prior-year quarter's $0.47 per share.

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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 54.3%, 50 basis points worse than the prior-year quarter. Operating margin was 23.0%, 40 basis points better than the prior-year quarter. Net margin was 16.2%, 170 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $26.7 million. On the bottom line, the average EPS estimate is $0.50.

Next year's average estimate for revenue is $109.1 million. The average EPS estimate is $2.11.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 21 members out of 27 rating the stock outperform, and six members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), nine give Young Innovations 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 Young Innovations is buy, with an average price target of $36.

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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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