The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Graham missed on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly, and GAAP earnings per share increased significantly.
Margins increased across the board.
Graham reported revenue of $24.3 million. The three analysts polled by S&P Capital IQ predicted revenue of $25.7 million. Sales were 27% higher than the prior-year quarter's $19.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.16. The three earnings estimates compiled by S&P Capital IQ forecast $0.24 per share. GAAP EPS of $0.16 for Q3 were 100% higher than the prior-year quarter's $0.08 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 26.6%, 130 basis points better than the prior-year quarter. Operating margin was 10.9%, 80 basis points better than the prior-year quarter. Net margin was 6.7%, 230 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $24.3 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $108.9 million. The average EPS estimate is $1.32.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,073 members out of 1,103 rating the stock outperform, and 30 members rating it underperform. Among 226 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 221 give Graham a green thumbs-up, and five 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 $25.67.
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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. 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.