NCI Building Systems Meets on the Top Line, Misses Where it Counts

Seth Jayson, The Motley Fool
Updated

NCI Building Systems (NYS: NCS) reported earnings on March 5. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Jan. 27 (Q1), NCI Building Systems met expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. GAAP loss per share dropped.


Margins contracted across the board.

Revenue details
 NCI Building Systems reported revenue of $297.6 million. The five analysts polled by S&P Capital IQ hoped for net sales of $298.1 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $243.6 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 -$0.19. The five earnings estimates compiled by S&P Capital IQ forecast $0.00 per share. GAAP EPS were -$0.19 for Q1 compared to -$0.54 per share for the prior-year quarter.

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 20.5%, 150 basis points worse than the prior-year quarter. Operating margin was 0.1%, 170 basis points worse than the prior-year quarter. Net margin was -1.2%, 140 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $315.8 million. On the bottom line, the average EPS estimate is $0.04.

Next year's average estimate for revenue is $1.39 billion. The average EPS estimate is $0.37.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 167 members out of 185 rating the stock outperform, and 18 members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give NCI Building Systems a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NCI Building Systems is buy, with an average price target of $16.50.

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The article NCI Building Systems Meets on the Top Line, 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 position in any of the stocks mentioned. 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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