The 10-second takeaway
For the quarter ended Sep. 30 (Q4), Headwaters beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP loss per share shrank.
Gross margins expanded, operating margins dropped, net margins increased.
Headwaters booked revenue of $190.1 million. The three analysts polled by S&P Capital IQ predicted revenue of $184.4 million on the same basis. GAAP reported sales were 6.7% higher than the prior-year quarter's $178.1 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 four earnings estimates compiled by S&P Capital IQ predicted $0.08 per share. GAAP EPS were -$0.08 for Q4 against -$0.77 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 29.8%, 240 basis points better than the prior-year quarter. Operating margin was 8.3%, 220 basis points worse than the prior-year quarter. Net margin was -2.6%, 2,360 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $146.9 million. On the bottom line, the average EPS estimate is -$0.05.
Next year's average estimate for revenue is $657.9 million. The average EPS estimate is $0.13.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 733 members out of 803 rating the stock outperform, and 70 members rating it underperform. Among 184 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 162 give Headwaters a green thumbs-up, and 22 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 $7.25.
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