The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Douglas Dynamics whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Douglas Dynamics reported revenue of $37.8 million. The five analysts polled by S&P Capital IQ expected sales of $42.8 million on the same basis. GAAP reported sales were 29% lower than the prior-year quarter's $53.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.10. The five earnings estimates compiled by S&P Capital IQ predicted $0.14 per share. GAAP EPS of $0.10 for Q3 were 44% lower than the prior-year quarter's $0.18 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 30.6%, 20 basis points worse than the prior-year quarter. Operating margin was 13.8%, 240 basis points worse than the prior-year quarter. Net margin was 6.2%, 110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $51.9 million. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $169.3 million. The average EPS estimate is $0.62.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 48 members out of 51 rating the stock outperform, and three members rating it underperform. Among 12 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 give Douglas Dynamics a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Douglas Dynamics is outperform, with an average price target of $16.50.
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