Dynamic Materials Beats Expectations But Takes A Step Back Anyway

Dynamic Materials (Nasdaq: BOOM  ) reported earnings on April 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Dynamic Materials met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share contracted significantly. GAAP earnings per share dropped significantly.

Margins shrank across the board.

Revenue details
Dynamic Materials chalked up revenue of $46.3 million. The five analysts polled by S&P Capital IQ expected revenue of $46.0 million on the same basis. GAAP reported sales were 7.9% lower than the prior-year quarter's $50.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.15. The six earnings estimates compiled by S&P Capital IQ predicted $0.13 per share. Non-GAAP EPS of $0.15 for Q1 were 17% lower than the prior-year quarter's $0.18 per share. GAAP EPS of $0.02 for Q1 were 89% 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.

Margin details
For the quarter, gross margin was 27.5%, 110 basis points worse than the prior-year quarter. Operating margin was -2.3%, much worse than the prior-year quarter. Net margin was 0.5%, 430 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $52.6 million. On the bottom line, the average EPS estimate is $0.21.

Next year's average estimate for revenue is $218.5 million. The average EPS estimate is $0.97.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dynamic Materials is outperform, with an average price target of $22.40.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Dynamic Materials. The Motley Fool owns shares of Dynamic Materials. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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