How The Wheels Came Off Blount International's Bus
Blount International (NYS: BLT) reported earnings on Mar. 6. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Blount International met expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Blount International chalked up revenue of $236.5 million. The one analyst polled by S&P Capital IQ expected revenue of $237.4 million on the same basis. GAAP reported sales were 38% higher than the prior-year quarter's $171.0 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 $0.19. The two earnings estimates compiled by S&P Capital IQ averaged $0.31 per share. GAAP EPS of $0.19 for Q4 were 24% lower than the prior-year quarter's $0.25 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 27.9%, 170 basis points worse than the prior-year quarter. Operating margin was 9.0%, 30 basis points worse than the prior-year quarter. Net margin was 4.0%, 320 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $239.4 million. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $1.00 billion. The average EPS estimate is $1.40.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 68 members out of 77 rating the stock outperform, and nine members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Blount International a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Blount International is outperform, with an average price target of $20.00.
Over the decades, small-cap stocks, like Blount International have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Blount International to My Watchlist.
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
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.