Highwoods Properties (NYSE: HIW) reported earnings on Feb. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Highwoods Properties beat expectations on revenues and missed expectations on earnings per share.

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

Gross margins contracted, operating margins dropped, and net margins increased.

Revenue details
Highwoods Properties reported revenue of $122.1 million. The 10 analysts polled by S&P Capital IQ looked for net sales of $118.4 million. Sales were 4.9% higher than the prior-year quarter's $116.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.06. The three earnings estimates compiled by S&P Capital IQ averaged $0.13 per share on the same basis. GAAP EPS of $0.16 for Q3 were 23% higher than the prior-year quarter's $0.13 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 61.7%, 400 basis points worse than the prior-year quarter. Operating margin was 23.8%, 490 basis points worse than the prior-year quarter. Net margin was 9.7%, 70 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $126.3 million. On the bottom line, the average EPS estimate is $0.21.

Next year's average estimate for revenue is $485.2 million. The average EPS estimate is $0.60.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Highwoods Properties is outperform, with an average price target of $33.60.

Over the decades, small-cap stocks like Highwoods Properties have produced market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.