Graham (AMEX: GHM) reported earnings on Jan. 27. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.

Looking ahead
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.

Investor sentiment
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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