Park Electrochemical Hits Estimates, but GAAP Results Lag Last Year's

Seth Jayson, The Motley Fool
Updated

Park Electrochemical (NYS: PKE) reported earnings on June 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended May 27 (Q1), Park Electrochemical met expectations on revenues and earnings per share.

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


Margins shrank across the board.

Revenue details
Park Electrochemical notched revenue of $46.0 million. The three analysts polled by S&P Capital IQ foresaw a top line of $46.0 million on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $51.8 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 $0.24. The three earnings estimates compiled by S&P Capital IQ predicted $0.24 per share. GAAP EPS of $0.24 for Q1 were 31% lower than the prior-year quarter's $0.35 per share.

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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 28.2%, 260 basis points worse than the prior-year quarter. Operating margin was 12.9%, 330 basis points worse than the prior-year quarter. Net margin was 10.7%, 330 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $48.3 million. On the bottom line, the average EPS estimate is $0.30.

Next year's average estimate for revenue is $199.4 million. The average EPS estimate is $1.29.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 65 members out of 69 rating the stock outperform, and four members rating it underperform. Among 23 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give Park Electrochemical 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 Park Electrochemical is outperform, with an average price target of $34.

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The article Park Electrochemical Hits Estimates, but GAAP Results Lag Last Year's originally appeared on Fool.com.

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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