The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Libbey missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share shrank significantly.
Margins contracted across the board.
Libbey chalked up revenue of $215.4 million. The two analysts polled by S&P Capital IQ anticipated revenue of $229.2 million on the same basis. GAAP reported sales were 3.5% lower than the prior-year quarter's $223.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.19. The two earnings estimates compiled by S&P Capital IQ predicted $0.36 per share on the same basis. GAAP EPS of $0.10 for Q4 were 23% lower than the prior-year quarter's $0.13 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 17.6%, 200 basis points worse than the prior-year quarter. Operating margin was 4.4%, 420 basis points worse than the prior-year quarter. Net margin was 1.0%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $182.1 million. On the bottom line, the average EPS estimate is -$0.03.
Next year's average estimate for revenue is $836.6 million. The average EPS estimate is $1.14.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 43 members out of 61 rating the stock outperform, and 18 members rating it underperform. Among 16 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 11 give Libbey a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Libbey is buy, with an average price target of $25.00.
Over the decades, small-cap stocks, like Libbey have provided 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: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Libbey to My Watchlist.