Diamond Hill Investment Group Crushes Estimates
Diamond Hill Investment Group (NAS: DHIL) reported earnings on Feb. 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Diamond Hill Investment Group beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share contracted.
Gross margins dropped, operating margins improved, and net margins increased.
Diamond Hill Investment Group reported revenue of $15.2 million. The one analyst polled by S&P Capital IQ looked for a top line of $13.1 million on the same basis. GAAP reported sales were 2.1% lower than the prior-year quarter's $15.5 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 $1.49. The one earnings estimate compiled by S&P Capital IQ averaged $0.88 per share. GAAP EPS of $1.49 for Q4 were 6.3% lower than the prior-year quarter's $1.59 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 41.6%, 660 basis points worse than the prior-year quarter. Operating margin was 41.6%, 140 basis points better than the prior-year quarter. Net margin was 29.3%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $12.4 million. On the bottom line, the average EPS estimate is $0.91.
Next year's average estimate for revenue is $48.4 million. The average EPS estimate is $3.71.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 179 members out of 187 rating the stock outperform, and eight members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 67 give Diamond Hill Investment Group a green thumbs-up, and two give it a red thumbs-down.
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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.