Black Diamond Crushes Earnings Estimates

Seth Jayson, The Motley Fool
Updated

Black Diamond (NAS: BDE) reported earnings yesterday. Here are the numbers you need to know.

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

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

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

Revenue details
Black Diamond notched revenue of $36.3 million. The four analysts polled by S&P Capital IQ expected to see sales of $36.9 million on the same basis. GAAP reported sales were 6.2% higher than the prior-year quarter's $34.2 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 $0.16. The four earnings estimates compiled by S&P Capital IQ predicted $0.07 per share. GAAP EPS of $0.16 for Q4 were 78% higher than the prior-year quarter's $0.09 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 39.2%, 100 basis points better than the prior-year quarter. Operating margin was 2.3%, 10 basis points worse than the prior-year quarter. Net margin was 9.7%, 1,100 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $44.0 million. On the bottom line, the average EPS estimate is $0.05.

Next year's average estimate for revenue is $163.8 million. The average EPS estimate is $0.11.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Black Diamond is buy, with an average price target of $10.17.

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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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