The 10-second takeaway
For the quarter ended Dec. 31 (Q4), AAON beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share grew significantly.
Margins increased across the board.
AAON reported revenue of $78.0 million. The two analysts polled by S&P Capital IQ looked for revenue of $69.4 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $63.4 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 $0.31. The two earnings estimates compiled by S&P Capital IQ predicted $0.23 per share. GAAP EPS of $0.31 for Q4 were much higher than the prior-year quarter's $0.03 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 24.0%, much better than the prior-year quarter. Operating margin was 15.5%, much better than the prior-year quarter. Net margin was 9.7%, 830 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $65.0 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $308.5 million. The average EPS estimate is $1.16.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 265 members out of 278 rating the stock outperform, and 13 members rating it underperform. Among 82 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 82 give AAON 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 AAON is hold, with an average price target of $21.00.
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