Columbus McKinnon Beats on EPS But GAAP Results Lag

Seth Jayson, The Motley Fool
Updated

Columbus McKinnon (NAS: CMCO) reported earnings on July 26. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 30 (Q1), Columbus McKinnon missed estimates on revenues and beat expectations on earnings per share.

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


Gross margins expanded, operating margins expanded, net margins contracted.

Revenue details
 Columbus McKinnon reported revenue of $138.9 million. The three analysts polled by S&P Capital IQ wanted to see a top line of $150.5 million on the same basis. GAAP reported sales were 9.2% lower than the prior-year quarter's $153.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

EPS details
 EPS came in at $0.38. The four earnings estimates compiled by S&P Capital IQ predicted $0.33 per share. Non-GAAP EPS of $0.38 for Q1 were 5.6% higher than the prior-year quarter's $0.36 per share. GAAP EPS of $0.35 for Q1 were 19% lower than the prior-year quarter's $0.43 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

Margin details
 For the quarter, gross margin was 31.3%, 270 basis points better than the prior-year quarter. Operating margin was 9.7%, 130 basis points better than the prior-year quarter. Net margin was 5.1%, 40 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $137.3 million. On the bottom line, the average EPS estimate is $0.32.

Next year's average estimate for revenue is $575.0 million. The average EPS estimate is $1.52.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 133 members out of 145 rating the stock outperform, and 12 members rating it underperform. Among 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Columbus McKinnon 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 Columbus McKinnon is outperform, with an average price target of $22.50.

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The article Columbus McKinnon Beats on EPS But GAAP Results Lag 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. 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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