Park-Ohio Holdings Crushes Earnings Estimates

Seth Jayson, The Motley Fool
Updated

Park-Ohio Holdings (NAS: PKOH) reported earnings on March 5. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Park-Ohio Holdings missed estimates on revenue and crushed expectations on earnings per share.

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

Gross margin dropped, operating margin increased, and net margin improved.

Revenue details
Park-Ohio Holdings recorded revenue of $234.6 million. The one analyst polled by S&P Capital IQ wanted to see revenue of $245.4 million on the same basis. GAAP reported sales were 6.4% higher than the prior-year quarter's $220.5 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 $0.64. The one earnings estimate compiled by S&P Capital IQ predicted $0.50 per share on the same basis. GAAP EPS of $1.58 for Q4 were 427% higher than the prior-year quarter's $0.30 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 16.4%, 10 basis points worse than the prior-year quarter. Operating margin was 5.8%, 90 basis points better than the prior-year quarter. Net margin was 8.1%, 650 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $243.1 million. On the bottom line, the average EPS estimate is $0.52.

Next year's average estimate for revenue is $1.03 billion. The average EPS estimate is $2.85.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 133 members out of 140 rating the stock outperform, and seven members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Park-Ohio Holdings a green thumbs-up, and one gives it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Park-Ohio Holdings is buy, with an average price target of $24.00.

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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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