AAON Meets on the Top Line, Misses Where It Counts
AAON (NAS: AAON) reported earnings on May 8. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), AAON met expectations on revenues and missed estimates on earnings per share.
Compared with the prior-year quarter, revenue expanded and GAAP earnings per share improved significantly.
Margins grew across the board.
AAON chalked up revenue of $65.0 million. The two analysts polled by S&P Capital IQ wanted to see a top line of $65.6 million on the same basis. GAAP reported sales were 8.4% higher than the prior-year quarter's $59.9 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 $0.18. The two earnings estimates compiled by S&P Capital IQ averaged $0.19 per share. GAAP EPS of $0.18 for Q1 were 20% higher than the prior-year quarter's $0.15 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 20.8%, 140 basis points better than the prior-year quarter. Operating margin was 11.6%, 140 basis points better than the prior-year quarter. Net margin was 7.0%, 90 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $72.5 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $286.4 million. The average EPS estimate is $0.83.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 271 members out of 284 rating the stock outperform, and 13 members rating it underperform. Among 84 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 84 give AAON a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AAON is hold, with an average price target of $17.00.
Over the decades, small-cap stocks like AAON 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." Get instant access to this free report.
- Add AAON 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. He is the 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 don't 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.