Graham (AMEX: GHM) reported earnings on Feb. 1. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Graham whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased significantly.
Margins increased across the board.
Graham booked revenue of $25.6 million. The six analysts polled by S&P Capital IQ expected to see revenue of $29.0 million on the same basis. GAAP reported sales were 5.4% higher than the prior-year quarter's $24.3 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 $0.30. The six earnings estimates compiled by S&P Capital IQ predicted $0.27 per share. GAAP EPS of $0.30 for Q3 were 88% higher than the prior-year quarter's $0.16 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 27.8%, 120 basis points better than the prior-year quarter. Operating margin was 15.4%, 450 basis points better than the prior-year quarter. Net margin was 11.9%, 520 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $31.6 million. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $109.0 million. The average EPS estimate is $0.99.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,047 members out of 1,076 rating the stock outperform, and 29 members rating it underperform. Among 181 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 177 give Graham a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Graham is outperform, with an average price target of $23.80.
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