AEP Industries Beats on the Top Line

Seth Jayson, The Motley Fool
Updated

AEP Industries (NAS: AEPI) reported earnings on June 11. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 30 (Q2), AEP Industries beat expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share grew.


Margins increased across the board.

Revenue details
AEP Industries logged revenue of $296.7 million. The one analyst polled by S&P Capital IQ looked for revenue of $272.2 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $248.5 million.

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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 $0.87. The one earnings estimate compiled by S&P Capital IQ averaged $0.39 per share. GAAP EPS were $0.87 for Q2 compared to -$0.11 per share for the prior-year quarter.

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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 14.5%, 250 basis points better than the prior-year quarter. Operating margin was 4.3%, 260 basis points better than the prior-year quarter. Net margin was 1.6%, 190 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $283.3 million. On the bottom line, the average EPS estimate is $0.24.

Next year's average estimate for revenue is $1.11 billion. The average EPS estimate is $1.12.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 74 members out of 91 rating the stock outperform, and 17 members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give AEP Industries a green thumbs-up, and five give it a red thumbs-down.

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At the time thisarticle 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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