Nacco Industries Crushes Earnings Estimates

Seth Jayson, The Motley Fool
Updated

Nacco Industries (NYS: NC) reported earnings on Feb. 29. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Nacco Industries missed estimates on revenues and crushed expectations on earnings per share.

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

Gross margins dropped, operating margins improved, net margins grew.

Revenue details
Nacco Industries reported revenue of $951.3 million. The one analyst polled by S&P Capital IQ expected revenue of $977.5 million on the same basis. GAAP reported sales were 9.8% higher than the prior-year quarter's $866.2 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 $6.47. The one earnings estimate compiled by S&P Capital IQ anticipated $5.17 per share. GAAP EPS of $6.47 for Q4 were 41% higher than the prior-year quarter's $4.59 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 19.0%, 30 basis points worse than the prior-year quarter. Operating margin was 6.0%, 70 basis points better than the prior-year quarter. Net margin was 5.7%, 130 basis points better than the prior-year quarter.

Looking ahead
Next year's average estimate for revenue is $3.60 billion. The average EPS estimate is $13.35.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 109 members out of 119 rating the stock outperform, and 10 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Nacco Industries a green thumbs-up, and one give it a red thumbs-down.

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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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