Mueller Industries Beats on EPS but GAAP Results Lag
Mueller Industries (NYS: MLI) reported earnings on April 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Mueller Industries whiffed on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share contracted significantly.
Gross margin increased, operating margin increased, and net margin shrank.
Mueller Industries booked revenue of $577.7 million. The one analyst polled by S&P Capital IQ predicted sales of $689.7 million on the same basis. GAAP reported sales were 16% lower than the prior-year quarter's $687.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.69. The two earnings estimates compiled by S&P Capital IQ anticipated $0.65 per share on the same basis. GAAP EPS of $0.85 for Q1 were 21% lower than the prior-year quarter's $1.07 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 14.6%, 40 basis points better than the prior-year quarter. Operating margin was 7.9%, 20 basis points better than the prior-year quarter. Net margin was 5.6%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $666.7 million. On the bottom line, the average EPS estimate is $0.59.
Next year's average estimate for revenue is $2.52 billion. The average EPS estimate is $2.35.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 154 members out of 165 rating the stock outperform, and 11 members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Mueller Industries a green thumbs-up, and two give it a red thumbs-down.
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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.