Headwaters Beats on the Top Line
Headwaters (NYS: HW) reported earnings on May 1. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q2), Headwaters beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP loss per share dropped.
Margins grew across the board.
Headwaters logged revenue of $129.6 million. The four analysts polled by S&P Capital IQ wanted to see a top line of $114.0 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $113.2 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 -$0.29. The three earnings estimates compiled by S&P Capital IQ anticipated -$0.26 per share. GAAP EPS were -$0.34 for Q2 versus -$2.58 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.3%, 570 basis points better than the prior-year quarter. Operating margin was -0.8%, 2,310 basis points better than the prior-year quarter. Net margin was -15.9%, 12,200 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $164.7 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $612.5 million. The average EPS estimate is -$0.24.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 744 members out of 808 rating the stock outperform, and 64 members rating it underperform. Among 173 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 155 give Headwaters a green thumbs-up, and 18 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Headwaters is outperform, with an average price target of $4.56.
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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.