How the Wheels Came Off Westwood Holdings Group's Bus
Westwood Holdings Group (NYS: WHG) reported earnings on April 19. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Westwood Holdings Group missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share grew.
Margins expanded across the board.
Westwood Holdings Group booked revenue of $17.9 million. The one analyst polled by S&P Capital IQ predicted revenue of $19.7 million on the same basis. GAAP reported sales were 5.0% higher than the prior-year quarter's $17.0 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 $0.52. The one earnings estimate compiled by S&P Capital IQ forecast $0.67 per share. GAAP EPS of $0.52 for Q1 were 4.0% higher than the prior-year quarter's $0.50 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 50.1%, 100 basis points better than the prior-year quarter. Operating margin was 34.1%, 110 basis points better than the prior-year quarter. Net margin was 21.2%, 30 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $20.1 million. On the bottom line, the average EPS estimate is $0.71.
Next year's average estimate for revenue is $80.6 million. The average EPS estimate is $2.81.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 139 members out of 146 rating the stock outperform, and seven members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Westwood Holdings Group a green thumbs-up, and give it a red thumbs-down.
Over the decades, small-cap stocks, like Westwood Holdings Group 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 Westwood Holdings Group 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.