Drew Industries Earnings Preview

Drew Industries (NYSE: DW  ) beat estimates by $0.02 last quarter, and investors are hoping it can beat them again. The company will unveil its latest earnings Monday. Drew Industries through its wholly-owned subsidiaries manufactures an array of components for recreational vehicles and manufactured homes.

What analysts say:

• Buy, sell, or hold?: Analysts strongly back Drew Industries, with two of three rating it a buy and the remainder rating it a hold. Analysts like Drew Industries better than competitor Winnebago Industries overall. That rating hasn't budged in three months as analysts have remained unchanged in their opinion of the stock.
• Revenue forecasts: On average, analysts predict $191.9 million in revenue this quarter. That would represent a rise of 10.6% from the year-ago quarter.
• Wall Street earnings expectations: The average analyst estimate is earnings of $0.51 per share. Estimates range from $0.44 to $0.58.

What our community says:
CAPS Al- Stars are solidly behind the stock with 95.6% giving it an "outperform" rating. The community at large backs the All-Stars with 91.7% granting it a rating of "outperform." Fools are bullish on Drew Industries and haven't been shy with their opinions lately, logging 120 posts in the past 30 days. Even with a robust four out of five stars, Drew Industries' CAPS rating falls a little short of the community's upbeat outlook.

Management:
Drew Industries' profit has risen year over year by an average of 80.6%. Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter	Q1	Q4	Q3	Q2
Gross Margin	22.4%	21.7%	21.7%	21.6%
Operating Margin	9.2%	4.3%	8.6%	9.3%
Net Margin	5.6%	2.9%	5.4%	5.5%

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