Headwaters (NYSE: HW) reported earnings on May 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q2), Headwaters beat expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded slightly and GAAP loss per share dropped.

Margins grew across the board.

Revenue details
Headwaters logged revenue of $129.6 million. The four analysts polled by S&P Capital IQ wanted to see a top line of $114.0 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $113.2 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 -$0.29. The three earnings estimates compiled by S&P Capital IQ anticipated -$0.26 per share. GAAP EPS were -$0.34 for Q2 versus -$2.58 per share for the prior-year quarter.

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 24.3%, 570 basis points better than the prior-year quarter. Operating margin was -0.8%, 2,310 basis points better than the prior-year quarter. Net margin was -15.9%, 12,200 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $164.7 million. On the bottom line, the average EPS estimate is $0.04.

Next year's average estimate for revenue is $612.5 million. The average EPS estimate is -$0.24.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 744 members out of 808 rating the stock outperform, and 64 members rating it underperform. Among 173 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 155 give Headwaters a green thumbs-up, and 18 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Headwaters is outperform, with an average price target of $4.56.

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