The 10-second takeaway
For the quarter ended March 31 (Q1), CECO Environmental whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share expanded significantly. GAAP earnings per share stayed the same.
Margins increased across the board.
CECO Environmental logged revenue of $34.4 million. The three analysts polled by S&P Capital IQ hoped for revenue of $41.1 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.18. The three earnings estimates compiled by S&P Capital IQ averaged $0.17 per share. Non-GAAP EPS of $0.18 for Q1 were 50% higher than the prior-year quarter's $0.12 per share. GAAP EPS of $0.12 were the same as 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 32.5%, 170 basis points better than the prior-year quarter. Operating margin was 12.9%, 160 basis points better than the prior-year quarter. Net margin was 6.4%, 20 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $47.0 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $199.5 million. The average EPS estimate is $0.90.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 132 members out of 137 rating the stock outperform, and five members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give CECO Environmental 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 CECO Environmental is buy, with an average price target of $11.88.
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