The 10-second takeaway
For the quarter ended Sep. 30 (Q3), AAON beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded.
Margins increased across the board.
AAON logged revenue of $76.8 million. The two analysts polled by S&P Capital IQ expected a top line of $74.6 million on the same basis. GAAP reported sales were 4.0% higher than the prior-year quarter's $73.8 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 $0.24. The two earnings estimates compiled by S&P Capital IQ anticipated $0.25 per share. GAAP EPS of $0.24 for Q3 were 4.3% higher than the prior-year quarter's $0.23 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 22.3%, 300 basis points better than the prior-year quarter. Operating margin was 13.5%, 160 basis points better than the prior-year quarter. Net margin was 7.8%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $66.9 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $289.7 million. The average EPS estimate is $1.02.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 267 members out of 280 rating the stock outperform, and 13 members rating it underperform. Among 81 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 80 give AAON a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AAON is hold, with an average price target of $19.00.
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