Aceto Outruns Estimates Again
Aceto (NAS: ACET) reported earnings on Feb. 9. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Aceto beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased.
Margins grew across the board.
Aceto booked revenue of $110.7 million. The two analysts polled by S&P Capital IQ looked for a top line of $95.3 million. GAAP sales were 29% higher than the prior-year quarter's $85.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.17. The one earnings estimate compiled by S&P Capital IQ predicted $0.07 per share. GAAP EPS were $0.17 for Q2 versus -$0.05 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 18.6%, 330 basis points better than the prior-year quarter. Operating margin was 6.4%, 440 basis points better than the prior-year quarter. Net margin was 4.1%, 550 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $139.3 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $407.6 million. The average EPS estimate is $0.46.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 250 members out of 256 rating the stock outperform, and six members rating it underperform. Among 70 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 give Aceto a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Aceto is buy, with an average price target of $10.75.
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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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