Raven Industries Catches Analysts Sleeping Again
Raven Industries (NAS: RAVN) reported earnings yesterday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Jan. 31 (Q4), Raven Industries crushed expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly, and GAAP earnings per share improved significantly.
Margins grew across the board.
Raven Industries chalked up revenue of $96.3 million. The one analyst polled by S&P Capital IQ expected net sales of $78.4 million on the same basis. GAAP reported sales were 36% higher than the prior-year quarter's $70.7 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 $0.60. The one earnings estimate compiled by S&P Capital IQ forecast $0.48 per share. GAAP EPS of $0.60 for Q4 were 46% higher than the prior-year quarter's $0.41 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 28.9%, 200 basis points better than the prior-year quarter. Operating margin was 17.2%, 280 basis points better than the prior-year quarter. Net margin was 11.4%, 90 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $112.7 million. On the bottom line, the average EPS estimate is $0.89.
Next year's average estimate for revenue is $399.9 million. The average EPS estimate is $2.93.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 463 members rating the stock outperform and 15 members rating it underperform. Among 174 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 171 give Raven Industries a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Raven Industries is outperform, with an average price target of $61.
Over the decades, small-cap stocks, like Raven Industries 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 Raven Industries 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.