The Gory Details of National Presto Industries' Earnings Miss

National Presto Industries (NYSE: NPK  ) reported earnings on May 11. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), National Presto Industries whiffed on revenues and whiffed on earnings per share.

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

Gross margins increased, operating margins shrank, net margins dropped.

Revenue details
National Presto Industries logged revenue of $96.8 million. The one analyst polled by S&P Capital IQ anticipated revenue of $110.8 million on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $108.9 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 $1.36. The one earnings estimate compiled by S&P Capital IQ averaged $1.63 per share. GAAP EPS of $1.36 for Q1 were 18% lower than the prior-year quarter's $1.65 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 21.0%, 80 basis points better than the prior-year quarter. Operating margin was 15.1%, 60 basis points worse than the prior-year quarter. Net margin was 9.7%, 70 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $110.4 million. On the bottom line, the average EPS estimate is $1.85.

Next year's average estimate for revenue is $464.9 million. The average EPS estimate is $7.74.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 599 members out of 609 rating the stock outperform, and 10 members rating it underperform. Among 183 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 181 give National Presto Industries a green thumbs-up, and two give it a red thumbs-down.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of National Presto Industries. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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  • Report this Comment On May 16, 2012, at 10:40 AM, efmagowan wrote:

    From Yahoo's summary: National Presto ..... operates in three segments: Housewares/Small Appliance, Defense Products, and Absorbent Products. How can you NOT like a company like this? NO ONE at NPK uses buzz phrases like "...the synergies created by our separate divisions....". They make quality products at reasonable prices and the corporate officers are not over-compensated buffoons such as is seen in so many companies. I've bought their household products, shot their bullets and will probably someday use their 'absorbent products'. I'm down on NPK stock but not down on NPK ... I see this as a buying opportunity.

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