Westwood Holdings Group Misses Where it Counts

Seth Jayson, The Motley Fool
Updated

Westwood Holdings Group (NYS: WHG) reported earnings on Oct. 18. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Sep. 30 (Q3), Westwood Holdings Group beat expectations on revenues and missed estimates on earnings per share.

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


Margins dropped across the board.

Revenue details
 Westwood Holdings Group logged revenue of $18.9 million. The one analyst polled by S&P Capital IQ predicted revenue of $18.1 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $16.0 million.

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 $0.34. The one earnings estimate compiled by S&P Capital IQ forecast $0.50 per share. GAAP EPS of $0.34 for Q3 were 26% lower than the prior-year quarter's $0.46 per share.

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 39.8%, 850 basis points worse than the prior-year quarter. Operating margin was 22.9%, 1,010 basis points worse than the prior-year quarter. Net margin was 13.2%, 730 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $18.4 million. On the bottom line, the average EPS estimate is $0.51.

Next year's average estimate for revenue is $74.4 million. The average EPS estimate is $2.02.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 144 members out of 151 rating the stock outperform, and seven members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give Westwood Holdings Group a green thumbs-up, and one give it a red thumbs-down.

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The article Westwood Holdings Group Misses Where it Counts 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. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Amazon.com, Apple, and Google. 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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