WMS Industries Misses on the Top and Bottom Lines

WMS Industries (NYS: WMS) reported earnings on April 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q3), WMS Industries missed estimates on revenue and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped.

Gross margin expanded, operating margin dropped, and net margin were steady.

Revenue details
WMS Industries tallied revenue of $176.0 million. The 13 analysts polled by S&P Capital IQ looked for a top line of $188.5 million on the same basis. GAAP reported sales were 8.7% lower than the prior-year quarter's $192.7 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.40. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.42 per share. GAAP EPS of $0.40 for Q3 were 2.4% lower 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.

Margin details
For the quarter, gross margin was 62.6%, 190 basis points better than the prior-year quarter. Operating margin was 17.7%, 40 basis points worse than the prior-year quarter. Net margin was 12.6%, about the same as the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $199.3 million. On the bottom line, the average EPS estimate is $0.50.

Next year's average estimate for revenue is $706.7 million. The average EPS estimate is $1.44.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 175 members out of 202 rating the stock outperform, and 27 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give WMS Industries a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on WMS Industries is hold, with an average price target of $22.84.

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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.

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