Tootsie Roll Industries' Earnings Beat Last Year's by 15%

Seth Jayson, The Motley Fool
Updated

Tootsie Roll Industries (NYS: TR) filed its 10-K on Feb. 29. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Tootsie Roll Industries beat expectations on revenues and met expectations on earnings per share.

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

Margins expanded across the board.

Revenue details
Tootsie Roll Industries reported revenue of $117.8 million. The one analyst polled by S&P Capital IQ expected revenue of $112.5 million on the same basis. GAAP reported sales were 8.8% higher than the prior-year quarter's $118.9 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
Non-GAAP EPS came in at $0.15. The one earnings estimate compiled by S&P Capital IQ predicted $0.15 per share on the same basis. GAAP EPS of $0.19 for Q4 were 27% higher than the prior-year quarter's $0.15 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 32.8%, 270 basis points better than the prior-year quarter. Operating margin was 9.1%, 180 basis points better than the prior-year quarter. Net margin was 8.8%, 130 basis points better than the prior-year quarter.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 111 members out of 155 rating the stock outperform, and 44 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 give Tootsie Roll Industries a green thumbs-up, and 16 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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