Diamond Hill Investment Group Beats on Both Top and Bottom Lines

Diamond Hill Investment Group (Nasdaq: DHIL  ) reported earnings on May 4. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Diamond Hill Investment Group beat expectations on revenues and earnings per share.

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

Margins grew across the board.

Revenue details
Diamond Hill Investment Group recorded revenue of $16.6 million. The one analyst polled by S&P Capital IQ anticipated revenue of $15.8 million on the same basis. GAAP reported sales were 1.0% higher than the prior-year quarter's $16.4 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 $1.52. The one earnings estimate compiled by S&P Capital IQ predicted $1.44 per share. GAAP EPS of $1.52 for Q1 were 19% higher than the prior-year quarter's $1.28 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 44.9%, 420 basis points better than the prior-year quarter. Operating margin was 36.2%, 310 basis points better than the prior-year quarter. Net margin was 27.8%, 570 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $15.6 million. On the bottom line, the average EPS estimate is $1.41.

Next year's average estimate for revenue is $61.8 million. The average EPS estimate is $5.60.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 180 members out of 187 rating the stock outperform, and seven members rating it underperform. Among 61 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 give Diamond Hill Investment Group a green thumbs-up, and two give it a red thumbs-down.

Over the decades, small-cap stocks like Diamond Hill Investment Group 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." Get instant access to this free report.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1880265, ~/Articles/ArticleHandler.aspx, 10/23/2016 2:36:20 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:00 PM
DHIL $181.20 Up +1.18 +0.66%
Diamond Hill Inves… CAPS Rating: *****