Drew Industries Increases Sales but Misses Estimates on Earnings

Seth Jayson, The Motley Fool
Updated

Drew Industries (NYS: DW) reported earnings on Feb. 13. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Drew Industries beat expectations on revenue and missed expectations on earnings per share.

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

Margins contracted across the board.

Revenue details
Drew Industries reported revenue of $159.6 million. The three analysts polled by S&P Capital IQ anticipated a top line of $133.3 million on the same basis. GAAP reported sales were 50% higher than the prior-year quarter's $106.2 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.18. The three earnings estimates compiled by S&P Capital IQ predicted $0.20 per share. GAAP EPS of $0.18 for Q4 were 29% higher than the prior-year quarter's $0.14 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 17.4%, 430 basis points worse than the prior-year quarter. Operating margin was 3.7%, 150 basis points worse than the prior-year quarter. Net margin was 2.6%, 30 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $195.1 million. On the bottom line, the average EPS estimate is $0.48.

Next year's average estimate for revenue is $737.5 million. The average EPS estimate is $1.79.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 376 members out of 412 rating the stock outperform, and 36 members rating it underperform. Among 193 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 186 give Drew Industries a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Drew Industries is hold, with an average price target of $29.00.

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At the time thisarticle was published Seth Jayson owned shares of the following at the time of publication: Drew Industries. 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. Motley Fool newsletter services have recommended buying shares of Drew Industries. 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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