Zep (NYSE: ZEP) reported earnings yesterday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Feb. 29 (Q2), Zep beat expectations on revenues and beat expectations on earnings per share.

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

Gross margins contracted, operating margins improved, and net margins improved.

Revenue details
Zep tallied revenue of $151.7 million. The two analysts polled by S&P Capital IQ expected revenue of $148.3 million on the same basis. GAAP reported sales were 3.3% higher than the prior-year quarter's $146.8 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 $0.11. The three earnings estimates compiled by S&P Capital IQ predicted $0.09 per share. GAAP EPS of $0.11 for Q2 were 10% higher than the prior-year quarter's $0.10 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 44.8%, 190 basis points worse than the prior-year quarter. Operating margin was 3.7%, 40 basis points better than the prior-year quarter. Net margin was 1.6%, 10 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $174 million. On the bottom line, the average EPS estimate is $0.34.

Next year's average estimate for revenue is $661.5 million. The average EPS estimate is $0.93.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 47 members rating the stock outperform and six members rating it underperform. Among eight CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give Zep a green thumbs-up, and one gives it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Zep is buy, with an average price target of $19.

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