Westwood Holdings Group Increases Sales but Misses Estimates on Earnings
Westwood Holdings Group (NYS: WHG) reported earnings on July 19. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Westwood Holdings Group beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share contracted significantly.
Margins shrank across the board.
Westwood Holdings Group logged revenue of $20.1 million. The one analyst polled by S&P Capital IQ expected sales of $18.4 million on the same basis. GAAP reported sales were 6.4% higher than the prior-year quarter's $18.9 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 $0.30. The one earnings estimate compiled by S&P Capital IQ forecast $0.53 per share. GAAP EPS of $0.30 for Q2 were 42% lower than the prior-year quarter's $0.52 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 40.8%, 550 basis points worse than the prior-year quarter. Operating margin was 18.7%, 1,270 basis points worse than the prior-year quarter. Net margin was 11.0%, 880 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $18.5 million. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $73.2 million. The average EPS estimate is $2.14.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 142 members out of 149 rating the stock outperform, and seven members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give Westwood Holdings Group a green thumbs-up, and give it a red thumbs-down.
Over the decades, small-cap stocks, like Westwood Holdings Group 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." Click here for instant access to this free report.
- Add Westwood Holdings Group to My Watchlist.
The article Westwood Holdings Group Increases Sales but Misses Estimates on Earnings 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. TMFDisclosureHere
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.