Westwood Holdings Group Crushes Earnings Estimates

Seth Jayson, The Motley Fool
Updated

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

The 10-second takeaway
 For the quarter ended June 30 (Q2), Westwood Holdings Group met expectations on revenues and crushed expectations on earnings per share.

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


Margins grew across the board.

Revenue details
 Westwood Holdings Group chalked up revenue of $23.5 million. The one analyst polled by S&P Capital IQ wanted to see sales of $23.6 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $20.1 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 $0.65. The one earnings estimate compiled by S&P Capital IQ forecast $0.49 per share. GAAP EPS of $0.65 for Q2 were 117% higher than the prior-year quarter's $0.30 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 49.3%, 850 basis points better than the prior-year quarter. Operating margin was 32.9%, much better than the prior-year quarter. Net margin was 20.8%, 980 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $22.7 million. On the bottom line, the average EPS estimate is $0.47.

Next year's average estimate for revenue is $90.3 million. The average EPS estimate is $1.91.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 148 members out of 154 rating the stock outperform, and six members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give Westwood Holdings Group a green thumbs-up, and give it a red thumbs-down.

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The article Westwood Holdings Group Crushes Earnings Estimates 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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