Griffon Increases Sales but Misses Revenue Estimates
Griffon (NYS: GFF) reported earnings on May 8. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q2), Griffon missed estimates on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved slightly and GAAP earnings per share improved.
Gross margins dropped, operating margins dropped, and net margins expanded.
Griffon logged revenue of $482.4 million. The two analysts polled by S&P Capital IQ expected to see a top line of $508.1 million on the same basis. GAAP reported sales were 1.3% higher than the prior-year quarter's $476.1 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 $0.04. The two earnings estimates compiled by S&P Capital IQ forecast $0.10 per share. GAAP EPS were $0.04 for Q2 compared to -$0.24 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 21.3%, 70 basis points worse than the prior-year quarter. Operating margin was 3.5%, 80 basis points worse than the prior-year quarter. Net margin was 0.4%, 330 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $502.7 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $1.96 billion. The average EPS estimate is $0.44.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 47 members out of 61 rating the stock outperform, and 14 members rating it underperform. Among 14 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 give Griffon a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Griffon is buy, with an average price target of $12.00.
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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.